(Bloomberg) -- Israeli tech deals and public offerings dropped to a 10-year low in 2023 after the war, months of protests and a global downturn battered the local industry.
There were 45 deals valued at $7.5 billion for Israeli tech companies this year, compared to $16.9 billion the previous year, according to a report by PricewaterhouseCoopers LLP. That was lowest total deal value since 2018.
The largest acquisition was Palo Alto Networks’s purchase of startup Talon for $625 million and nearly half of all deals were cybersecurity-related. The largest public offering coming out of Israel was the $1.9 billion Nasdaq listing of makeup and wellness company Oddity in July.
Tech accounts for about 18% of Israel’s GDP and more than half of its exports. Funding for Israeli startups dropped considerably in 2023, amid global economic uncertainty and months of protests against the government’s plans to weaken the judiciary. Since the Israel-Hamas war began in October, thousands of tech workers have also been called up for military reserve duty, putting another strain on companies.
“It is still difficult and premature to tell where this is all going to go, but there is little doubt that the outcomes of the war and ensuing political and societal developments will be critical to the future of Israel, in general, and its high-tech industry, in particular,” PwC Israel analyst Yaron Weizenbluth wrote. “The Israeli tech miracle that brought us to new highs is still fragile and must be guarded and protected.”
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