Top 50 Most Promising Israeli Startups

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Top 50 Most Promising Israeli Startups

With the fall in venture capital investments removing the background noise, this year’s list of the 50 most promising Israeli startups highlights the companies with a real profit model

Meir Orbach and Sophie Shulman | 04.25.2023

The atmosphere outside is gloomy, both because of the judicial overhaul in Israel that has led to a rift in the nation and because of the winds of recession blowing from the direction of the U.S. The changes in the macroeconomic situation have made everyone’s life more difficult, whether it is a startup fighting for survival or a veteran public company.

High interest rates have returned after two decades during which there were those who forgot they could rise, and others who had never even experienced such a reality. After years in which deposits and investments in bonds yielded zero returns and pushed everyone into the circle of risks that characterize high-tech investments, suddenly it is no longer worth the risk. A 5% return is now available at zero effort and even more if it’s larger amounts, and with no risk at all, certainly nothing like the risk levels that characterize investment in venture capital funds.

And so, after the phenomenal 2021 and a strong 2022, the winter of 2023 has arrived. The companies, who may already be ready to get off the fence they sat on last year and recognize that the value levels of 2021 were unrealistic, are now encountering investment funds that are largely “sitting on their hands”. The funds waited until the high-tech companies internalized the change in the situation in order to take part in fundraising rounds under more favorable conditions, but now many of them have difficulty calling for money or are afraid to make investments, preferring to keep funds for emergencies in the best companies in their portfolio.

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