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Traditional Capital Raising - Israel

Israel
  • The Total Capital Raised in the Traditional Capital Raising market market in Israel is expected to reach US$12.77bn by 2025.
  • Venture Capital is set to dominate the market with a projected market volume of US$12.03bn in 2025.
  • When compared globally, the United States is anticipated to generate the most Capital Raised, amounting to US$168.3bn in 2025.
  • Israel's traditional capital raising market is experiencing a surge in interest from international investors seeking innovative tech opportunities in the Start-up Nation.

Definition:

The Traditional Capital Raising market relates to venture investment in startups and emerging companies that are not yet generating positive or significant revenue but have high growth potential. The capital is mostly raised from venture financial institutions, and minorly from banks.

Structure:

The market consists of two segments:
- The Venture Capital market refers to private equity funding that is offered to startups and emerging companies.
- The Venture Debt market refers to the combination between equity and debt financing, which is used to finance the early stage and growth stage capital-backed companies.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Although the Traditional Capital Raising market is highly competitive in investment opportunities due to the rapidly high growth rate of startups and emerging companies, it has become more popular for these businesses who cannot get traditional loans from banks, to develop and grow their businesses or projects.
Key players in this market are companies such as Sequoia Capital and Hercules Capital.

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In-Scope
  • Venture Capital
  • Venture Debt
Out-Of-Scope
  • Traditional bank loans
  • Digital capital raising
Traditional Capital Raising: market data & analysis - Cover

Market Insight report

Traditional Capital Raising: market data & analysis
Study Details

    Capital Raised

    Notes: Data shown is using current exchange rates. Data shown reflects market impacts of Russia-Ukraine war and the bankruptcy of the Silicon Valley Bank.

    Most recent update: Mar 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Key Players

    Most recent update: Dec 2024

    Source: Statista Market Insights

    Average Deal Size

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Global Comparison

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Number of Deals

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Traditional Capital Raising Market in Israel has been experiencing a mild decline, influenced by factors such as tightening investor sentiment, increased competition for funding, and evolving regulatory frameworks that impact investment dynamics and opportunities.

    Customer preferences:
    Investors in Israel's Traditional Capital Raising Market are increasingly favoring sustainable and socially responsible investment opportunities, reflecting a growing awareness of environmental and social issues. This shift is driven by a younger, more socially conscious demographic that prioritizes ethical considerations in their investment choices. Additionally, the rise of technology startups and innovation hubs is reshaping funding preferences, as investors seek out disruptive solutions that align with modern lifestyle trends and address pressing societal challenges.

    Trends in the market:
    In Israel, the Traditional Capital Raising Market is experiencing a notable shift towards sustainable and socially responsible investments, as investors increasingly prioritize ethical considerations alongside financial returns. This trend is propelled by a younger generation that values transparency and accountability in their investment choices. Furthermore, the emergence of technology startups focusing on innovative solutions to environmental and social challenges is attracting significant capital. This dual emphasis on sustainability and innovation is reshaping investor strategies and could lead to a more resilient and socially conscious market landscape, benefiting both entrepreneurs and stakeholders alike.

    Local special circumstances:
    In Israel, the Traditional Capital Raising Market is influenced by a unique blend of cultural, geographical, and regulatory factors. The country’s strong emphasis on technology and innovation, bolstered by a vibrant startup ecosystem, attracts both local and international investors eager to support groundbreaking solutions. Additionally, Israel’s diverse population fosters a culture of inclusivity and collaboration, enhancing the appeal of socially responsible investments. Regulatory frameworks promoting transparency and accountability further empower investors, creating a conducive environment for sustainable capital raising initiatives.

    Underlying macroeconomic factors:
    The Traditional Capital Raising Market in Israel is significantly shaped by macroeconomic factors such as global economic trends, national economic health, and fiscal policies. Strong global demand for innovative technologies propels local startups, attracting substantial foreign investment. Additionally, Israel's robust GDP growth and low unemployment rates bolster investor confidence, enhancing market performance. Fiscal policies promoting R&D and tax incentives for investors further stimulate capital inflows. Moreover, geopolitical stability and a favorable regulatory environment contribute to a thriving ecosystem, encouraging sustainable investment practices and fostering long-term growth in the capital raising landscape.

    Methodology

    Data coverage:

    Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average 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), and 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. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

    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.

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    Traditional Capital Raising: market data & analysis - BackgroundTraditional Capital Raising: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Jan 2025

    Source: Statista Market Insights

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    Venture capital worldwide - statistics & facts

    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.
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