Israeli tech at risk of not joining global industry recovery
Israeli tech shares are sharply underperforming their US peers.
Al-Monitor Pro Members
David Rosenberg
Israeli reporter specializing in business, economics and politics
July 19, 2023
Israel’s startup-oriented high-tech industry is at risk of failing to rebound from the global slump. Startup companies in the United States and Europe raised more capital in the second quarter of the year than in the first while technology shares on Wall Street have rallied. In Israel, startup fundraising showed a modest improvement, but the youngest startups continue to suffer. Israeli tech shares are sharply underperforming their US peers. In addition, there are growing signs of structural problems that may also be impeding a recovery. High-tech is the main growth engine of the Israeli economy — a major source of employment, exports, foreign currency and tax revenues. The absence of an industry recovery would have far-reaching effects on the wider economy and may also undercut Israel’s ability to maintain its technology-based military edge.