Israel’s hi-tech sector has displayed remarkable resilience despite wartime disruptions and capital shortages, according to a survey released by the Israel Innovation Authority on Sunday.
The survey reported that, as of November 2024, 70% of companies have projected sales growth, even as 80% face urgent fundraising needs within six months.
As the third annual survey examining the war’s impact on hi-tech companies, this was the first time the IIA included companies that are not startups.
Nearly half of all companies have implemented efficiency measures such as cost reductions and layoffs to adapt to operational disruptions caused by employees in prolonged military reserve duty, flight cancellations, and global investors’ caution. Despite this, 38% of companies expressed optimism about the future.
A majority of companies express a need to raise capital within the next six months, with nearly 43% claiming fundraising as their main challenge.
Ensuring the future of the industry
“It is precisely in these challenging times that the strength of Israeli hi-tech becomes evident: rapid adaptation to a new reality, creative problem-solving, and a willingness to face unprecedented challenges. The entire ecosystem - government, investors, and companies - must come together to ensure the future of this industry, which is not only a critical growth engine but also a symbol of Israel's innovation and leadership on the international stage.” Dror Bin, CEO of the Israel Innovation Authority, said.
“This is no time for compromises. We must seize this crisis as an opportunity to build stronger infrastructure, improve the business environment, and increase investment in growing companies to ensure that Israeli hi-tech returns to rapid growth and prosperity."