The big money has arrived for what could be the next generation of Israel’s vaunted technology sector.
International investors helped set off a bonanza last year, when Israeli startups raised about $26 billion -- more than double the previous high in 2020 and nearly a quarter as much as the funding that poured into Europe as a whole.
Upending the pecking order in local venture capital, U.S. funds made 266 early-stage investments, an increase of almost a fifth from the previous year, according to data from Start-Up Nation Central, a non-profit organization that tracks the industry in Israel.
The exuberance comes with more risk. Tiger Global Management and Insight Partners, which have already bankrolled Israel’s largest privately-held firms, are increasingly betting on younger and less proven companies as a way to corner the market of upcoming winners and potentially reap greater returns. SoftBank Group Corp. and Blackstone Inc. are meanwhile opening local branches to better sniff out opportunities.
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