Excluding deals over $5 billion, 2021 capital saw almost 50% from IPOs, while the number of M&As did not fall short compared to previous years.
According to a report from Start-Up Nation Central (SNC), the three largest earning sectors in Israel were Enterprise IT & Data Infrastructure (which raised just under $6b), Cybersecurity-dominated Security Technologies ($5.9b), and Fintech ($4.2b).
Subsequently, in 1990, Gideon Tolkowsky and Yadin Kaufmann founded Israel's second VC firm, "Veritas Venture Capital Management",[10] whose main investors were Anglo American Corporation of South Africa and De Beers.
The success of the venture capital industry in Israel continued with Yozma (Hebrew for "initiative"), a government initiative in 1993 offering attractive tax incentives to foreign venture capital investments in Israel and promising to double any investment with funds from the government.
[11] As a result of their efforts, Israel's annual venture capital outlays rose nearly 60-fold, from $58 million to $3.3 billion, between 1991 and 2000.
[13] Venture capitalist Aileen Lee coined the term "unicorn" in 2013 to define a privately held startup valued at $1 billion or more.
In the early 1990s, the Israeli government created a technological business incubator program (Hebrew: חממה טכנולוגית) to leverage the strengths of approximately 750,000 scientists, engineers, and physicians who had just arrived from the former USSR.
Israel's Office of the Chief Scientist (OCS), a division of the Ministry of Economy, started six incubators designed to foster seed and early-stage technology development through entrepreneurship.