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JERUSALEM (Reuters) – Israeli establishments invested $900 million within the nation’s high-tech sector in 2021, a five-fold leap over 2020, the Israel Innovation Authority mentioned on Monday.
The rise got here after the authority in 2020 sought to encourage extra institutional funding within the nation’s sturdy tech trade, which is a key financial progress driver that accounts for 15% of Israel’s gross home product.
Beneath its programme, the authority provided a government-backed security web of two billion shekels ($623.5 million) for institutional traders’ investments in high-tech corporations. They’re compensated as much as 40% of their investments in high-tech corporations made after seven years within the occasion of a detrimental yield.
Burned by the tech bubble that burst in 2000 and hampered by regulatory constraints, Israeli pension funds and different establishments have since shied away from high-tech, throughout which billions of {dollars} have been generated by high-profile takeovers or flotations.
Most investments in Israeli tech corporations are international.
9 institutional traders are collaborating within the programme and are entitled to draw back safety on their investments in high-tech corporations of their early progress and gross sales phases.
The authority mentioned the variety of offers through which institutional traders have been concerned rose to greater than 120 in 2021 from 34 in 2020.
“Whereas the institutional traders diversified their portfolio in 2021 to varied know-how verticals, they have a tendency to focus primarily on deep tech and fintech,” it mentioned.
It added that they developed sub-investment committees, employed new analysts and created collaborations with skilled high-net value angel traders.
The Establishments collaborating are insurance coverage corporations Clal Insurance coverage and Finance, Menora Mivtachim, Phoenix and Migdal, funding arms at banks Hapoalim, Leumi, Mizrahi Tefahot and Low cost and Extra Funding Home.
($1 = 3.2079 shekels)
Reporting by Steven Scheer, enhancing by Ed Osmond
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