Startup Nation Central, a nonprofit organization, said on Tuesday that investment in the Israeli tech sector has dropped by almost half in 2022, reflecting the global economic slowdown.
An industry watcher in Israel said the total value of investment in the tech sector has dropped from an all-time high of $27 billion in 2021 to about $15.5 billion last year.
The tech industry accounts for more than half of Israel’s exports, according to official figures.
The organization attributed the decline to the global economic downturn, noting that the trend is not limited to Israel.
She pointed out that cybersecurity companies were hardest hit by more than 60% funding cuts between 2021 and 2022.
The study showed that other sectors experienced a decrease in investment by about 42%.
In the same context, the organization said that the decline occurred in the second half of 2022 as a result of inflation and high interest rates, as well as problems with supply chains and other issues related to the consequences of the situation around Ukraine.
Source: AB
