Review of the Israel Tech Ecosystem 2022

Review of the Israel Tech Ecosystem 2022

After a year of record-breaking highs and a global financial downturn, the Israeli high-tech industry's business variables have returned to their long-term averages. In 2022, the 'Start- Up Nation' maintained its position as the world's fifth-largest tech ecosystem, raising $17B in capital investment and adding 21 new unicorn companies.?

The first half of 2022 followed the record-breaking marketplace in 2021, marked by high capital funding levels, high worker demand, and rising market capitalizations. In the second half of the year, there was an overall decline in the number of deals and exits and the value of publicly traded tech companies. Compared to 2021, global funding significantly decreased by 35% in the start-up realm, with Israeli funding dipping even lower to 40%. It is notable to mention the overall global financial slowdown contributing to the declines in market cap, rising interest rates, and widespread layoffs impacting the tech ecosystem.

Global confidence in the Israeli high-tech industry has led to multinational business partnership opportunities. Despite poor market conditions, 109 M&A deals were closed in 2022, reaching a total value of $18B. Notably, Unity completed $4.4B in a merger with ironSource, Intel acquired Tower Semiconductors representing a total enterprise value of approximately $5.4B, and Zimperium was acquired by Liberty Strategic Capital to accelerate the mission of strengthening mobile security worldwide.?

While the Israeli high-tech industry has had ups and downs, Israel continues to produce innovative and globally recognized technology. Check out some of the most innovative companies of the year below:?

Bee-io Honey Ltd : Based out of Israel, BEE-IO is a groundbreaking honey production method without bees. Their process combines natural nectar flowers with a unique biological process that turns the nectar into honey.?BEE-IO is a sustainable solution to honey consumption by utilizing novel patent-pending methods.

Reep Technologies: Reep offers the world's first practical, industrial-strength system for circular printing. Reep's solution sets a new standard in sustainability for office printing while meeting the requirements of leading enterprises and organizations. Reep technologies aim to increase document safety and save operations costs through circular printing.

6Degrees LTD : 6Degrees is an Israeli start-up that has developed a hands-free adaptive controller for people who cannot use their hands. The company has created a technology that can easily translate movements into a command on any smart device- including computers, tablets, smartphones, etc. With every move, the technology learns and adapts to the user's unique motions and adjusts according to their needs.

Plantopia Bio. : Pigmentum offers a sustainable and highly scalable solution for the low-cost production of high-value natural compounds for industries such as food and nutrition, health, diagnostics, and research. Pigmentum is developing a patent-protected molecular technology platform that can turn indoor or outdoor-grown crops into efficient producers of high-value compounds at a fraction of the cost incurred by the current fermentation-based industrial production plants.

Green Kinoko: Green Kinoko has developed an elegant outdoor cooling air conditioner based on innovative patented cooling technology. Their product 'Kenshō' is the first outdoor air conditioner that doesn't need an electrical connection. Kenshō by Green Kinoko brings the green revolution to outdoor cooling and has already brought great demand for collaborations in the long term.