According to a nonprofit organization, investments in Israel’s tech sector decreased by over half in 2022, reflecting a global economic slowdown.
The total amount of investments in the IT sector decreased from an all-time high of $27 billion in 2021 to roughly $15.5 billion last year, according to Startup Nation Central, which monitors the industry in Israel.
According to official statistics, more than half of the nation’s exports come from the technology sector.
The global economic slowdown was noted, and it was stated that this tendency was not specific to Israel.
According to SNC, cybersecurity companies took the worst blow, with a financing decrease of more than 60% between 2021 and last year.
According to the report, investment in other industries fell by an average of 42%.
According to the group, the decline occurred in the second half of 2022 due to supply chain concerns, interest rate increases, inflation, and other factors associated with Russia’s invasion of Ukraine.
In recent weeks, more than 400 representatives of the technology sector wrote to Prime Minister Benjamin Netanyahu to warn him that his hard-line coalition’s ideas might hurt the business and deter foreign investment.