Capital Raising - Israel | Statista Market Forecast

The country in Israel is expected to witness a Total Capital Raised in the Capital Raising market market reaching US$12.30bn by 2024.
Traditional Capital Raising is anticipated to maintain market dominance with a projected market volume of US$12.13bn in 2024.
When compared globally, the United States is forecasted to generate the most Capital Raised at US$195.4bn in 2024.
Israel's dynamic tech scene continues to attract significant capital raising activities, positioning the country as a key player in the global venture capital market.

Definition:

The Capital Raising market refers to the process of raising additional capital to launch, finance, and grow a business or a project. Traditional Bank Loans are not considered in the market.

Structure:

The market consists of two segments:
- The Traditional Capital Raising market refers to traditional venture financial services for startups and emerging companies that do not yet possess a positive track record, but have exceptional growth potential.
- The Digital Capital Raising market refers to digital financial services for business customers and private borrowers.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Besides Traditional Bank Loans, there are various alternative forms of debt and equity financing that help businesses, especially startups and emerging companies who seek additional funds to support their business' operation and growth. Nowadays, owing to the rapid growth rate of startups and emerging companies, these financial services are more attractive and popular.
Key players in this market are companies such as Squoia Capital, Hercules Capital, and Indiegogo

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Venture Capital
Venture Debt
Digital Capital Raising

Traditional Bank Loans

The Capital Raising market in Israel has been experiencing significant growth in recent years, driven by a combination of customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Israel, there is a strong preference among investors for innovative and high-growth companies. Israeli investors are known for their willingness to take risks and invest in early-stage startups with disruptive technologies. This preference for high-growth potential has fueled the demand for capital raising activities in the country.

Trends in the market: One of the key trends in the capital raising market in Israel is the rise of venture capital funding. Israel has a vibrant startup ecosystem, with a high number of tech startups and a strong culture of entrepreneurship. This has attracted significant venture capital investment from both domestic and international investors. The availability of venture capital funding has provided startups with the necessary capital to grow and expand their operations. Another trend in the market is the increasing popularity of initial public offerings (IPOs) among Israeli companies. IPOs provide companies with access to public capital markets, allowing them to raise significant amounts of capital for growth and expansion. The success of several high-profile Israeli IPOs in recent years has further fueled the interest in this form of capital raising.

Local special circumstances: Israel is known for its strong technological capabilities and innovation-driven economy. The country has a high concentration of technology companies and startups, particularly in sectors such as cybersecurity, artificial intelligence, and biotechnology. This concentration of innovative companies has created a favorable environment for capital raising activities, as investors seek to capitalize on the potential growth and returns offered by these companies. Furthermore, Israel has a well-developed ecosystem to support capital raising activities. The country has a robust network of angel investors, venture capital firms, and investment banks that provide funding and advisory services to startups and companies looking to raise capital. This supportive ecosystem has played a crucial role in the growth of the capital raising market in Israel.

Underlying macroeconomic factors: The Israeli economy has been performing well in recent years, with strong GDP growth and low unemployment rates. This favorable macroeconomic environment has created a conducive climate for capital raising activities. Investors are more willing to invest in companies and startups when the overall economy is stable and growing. Additionally, the Israeli government has implemented various policies and initiatives to promote entrepreneurship and innovation. These include tax incentives for investors, grants and subsidies for startups, and the establishment of technology incubators and accelerators. These government initiatives have further stimulated the capital raising market in Israel by providing additional support and incentives for investors and companies. In conclusion, the Capital Raising market in Israel is experiencing significant growth due to customer preferences for high-growth companies, trends such as venture capital funding and IPOs, local special circumstances including a strong innovation-driven economy and supportive ecosystem, and underlying macroeconomic factors such as a stable and growing economy and government initiatives to promote entrepreneurship and innovation.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.