Israel's high-tech sector experienced a record year in 2021 as startups raised $25.4 billion from January to November, while 33 companies reached unicorn status with valuations of $1 billion or more, according to a report published Monday by Start-Up Nation Central (SNC).
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Compared to $10.8 billion raised in 2020, this year's figure represents a 136% increase.
"Two years into the COVID-19 pandemic, the Israeli tech ecosystem is stronger than ever," said Avi Hasson, CEO of SNC.
"In a world where digital has become the default, Israel is a world-class source of solutions to global challenges."
Funding in Israeli startups and companies was 71% more than the global average, as shown by data compiled by the research firm Pitchbook.
"This… raises the question of whether Israel has made the transition from being the Start-Up Nation to the Scale-Up Nation," Hasson said.
Hasson also pointed out that Israeli companies were dealing with a shortage of qualified employees, with tens of thousands of high tech jobs unfilled. According to Hasson, SNC was extending a had to Israeli tech firms by launching training programs for high-tech workers and helping connect Israeli entrepreneurs to governments, corporations, and investors.
The three largest sectors in terms of funding were fintech, enterprise IT and data infrastructure, and security technologies, the SNC report said.
Israel also saw 33 privately-held technology companies join the billion-dollar club in 2021, bringing the total number of unicorns (companies valued at $1 billion or more) in the country to 53.
The new unicorns include biotech firm Immunai; robotics startup Fabric; cybersecurity startup Wiz; fintech firm Melio; and music app maker JoyTunes.
This article was first published by i24NEWS.
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