Sharon Wrobel
This year Israel has been facing one of the longest and most intense wars in its history, levels of geopolitical uncertainty have been off the charts, and yet the local tech market for “exits” — mergers and acquisitions or initial public offerings of shares – is on track for one of the best years over the past decade.
The value of Israeli tech exits, including M&As and IPOs, this year jumped 78 percent to $13.4 billion, up from $7.5 billion in 2023, according to the 2024 exit report by consultants PwC Israel released on Wednesday. Despite the large increase in the value of transactions, there was a modest increase in the number of deals executed this year – 53 compared to 45 transactions completed in 2023.
From the outset, the data looks encouraging, but a closer look shows that almost half of the transactions were middle-of-the-road deals, in the $100 to 500 million range, involving more established startups and companies mostly developing cybersecurity and artificial intelligence technologies. Overall, average deal size surged by 51%, to $252 million compared to $167 million in the previous year.
“Against the backdrop of the war and amid internal and global challenges, the Israeli high-tech industry demonstrates recovery signs in 2024, showing significant upward trends in both average deal size and total transaction values,” said Yaron Weizenbluth, partner at PwC Israel. “However, it’s important to note that alongside this growth, the market remains characterized by unprecedented levels of uncertainty this year.”