10) Startup Nation in times of conflict: The investor perspective

100+ INVESTORS REVEAL HOW THE WAR IN ISRAEL AFFECTED THEIR INVESTMENT STRATEGY

The current conflict in Israel has injected a new layer of uncertainty into an already volatile startup investment landscape. In an attempt to better understand investor sentiment, we set out to collect data on the current climate and help illuminate the key factors influencing investment decisions.

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Mitigating risks

Investors urge founders to mitigate war-related risks by focusing on business fundamentals

42^% Update growth projections
72^% Cut costs and increase runway

Opportunities

Unlike local investors, less international investors see lower valuations as a major opportunity

83^% Israeli investors see valuations as a major opportunity
56^% international investors see valuations as a major opportunity

Investing in tech

Despite the war, investors are expecting to invest more in Israeli tech in 2024 compared to the previous year

49^% Invest more
37^% Invest same
14^% Invest less/none

Investment forecast

Moody's shocks the market, but investors won't change their investment forecasts

80^% of investors

report the Moody's decision did not change their Israeli investment forecast

Global talent

Despite looming threat of ongoing war, investors don’t recommend global hiring as a strategy to mitigate risk

The recent conflict underscored the resilience and adaptability of Israel's local talent pool. Despite a significant portion of the workforce being called up for reserves, the Israeli tech sector continued to thrive. Agile entrepreneurs found innovative ways to cope with limited resources, ensuring that companies remained operational and the ecosystem resilient. Recognizing this strength, investors now see the value in Israeli startups maintaining their reliance on local talent rather than advocating for them to hire abroad.

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