Investments by European companies in Israeli startups last year totaled $1.66 billion last year, or about 10% of the total funds raised, research company IVC said.
The company added that there were 239 transactions involving European money and the funds raised by Israeli startups in 2022 from European sources made up about 10% of the total funds.
2021 was peak fundraising year - IVC
Furthermore, 2021 was the peak year in fundraising from Europe, according to the company, with investments that year totaling $2.141 billion. Although fundraising from Europe decreased in 2022, the average investment by European entities increased by 55% from $3 million per investment in 2018 to $4.65 million in 2022.
9 Israeli startups were purchased last year by European entities for a total of $2.336 billion, compared to 29 purchases in 2021 for a total of $2.131 billion.
66 European investment entities are currently operating in Israel currently, including venture capital funds, investment banks, private funds and government investment agencies. 36 of these entities are from the European Union, 20 are from Britain and 10 are from Switzerland.
Among the entities leading by number of investments from 2018-2022 were the Angels Club from Luxembourg; La Maison Compagnie d'investissement, which made 50 investments in Israel's technology sector; venture capital fund Target Global from Germany, which invested in 45 Israeli companies; and England's LocalGlobe, which invested in 37 Israeli companies.
IVC's findings were published ahead of the Europe Days 2023 conference, to be held in Tel Aviv on March 21. The conference will bring together Israeli startups and major European investors and will offer business meetings featuring companies from Germany, Austria and Switzerland.
“The activity of European investment entities in Israel is gradually increasing.”IVC CEO Guy Holtzman
“The activity of European investment entities in Israel is gradually increasing,” said IVC CEO Guy Holtzman. “The amount of investments coming from European entities has been increasing over the years.”
“Admittedly, the funds from Europe are still significantly lower compared to the US, but the amounts are already stable beyond the billion dollar mark,” Holtzman added. “We see European investors taking a greater part in companies that carry out significant [sic] fund raising as well as strategically significant investments. The progress is also evident in the type of investors and includes funds from financial entities that are considered large globally in the field of venture capital and investment management.”
“The companies and investors from Europe are currently at a point where they must look outside to places like Israel, which will provide them with what businesses all over the world are looking for: innovation, new products and winning business models, these are not going to disappear from here,” said Gilli Cegla, founder of Europe Days and CEO of the company Novawind.
He added: “Other speakers and representatives who will come to the conference include the CEO of Austrian VC SpeedInvest Oliver Holle, one of the largest early stage funds in Europe, which is looking for more investments in Israel and already invested in several Israeli startups; René Obermann, CEO of Warburg Pincus Europe, the private equity fund that has invested about 100 billion dollars since its establishment - including in Israel; Olaf Koch, Partner and Founder of the VC Zintinus specializing in food tech and retail, and until recently the CEO of the German retail chain Metro and Gadi Toren, who manages Robert Bush's VC fund in Israel, which has already invested in about 20 Israeli startups to date.”