Tel Aviv, Israel — Investments in Israel’s technology sector will almost halve in 2022, reflecting a slowdown in the global economy, the nonprofit reported Tuesday.
Total investment in the tech sector fell to about $15.5 billion last year from a record $27 billion in 2021, according to Startup Nation Central, which tracks the Israeli industry. According to official data, the high-tech industry accounts for more than half of the country’s exports.
Citing the global recession, he said the trend was not unique to Israel.
Cybersecurity firms have been hit hardest, with funding dropping by more than 60% from 2021 to last year, SNC said. Other sectors, each hit by a decline in investment, fell about 42%, the study found.
The group said the decline occurred in the second half of 2022 as a result of rising inflation and interest rates, supply chain problems and other issues related to Russia’s invasion of Ukraine.
Over 400 tech industry executives and workers have written to Prime Minister Benjamin Netanyahu in recent weeks warning that his hardline coalition proposals could hurt the industry and discourage foreign investment. bottom.