The Israeli tech ecosystem continued to break records in Q3 2021, demonstrating substantial growth in funding activity, which brought the total funding of the first 9 months of 2021 to $18.5B, which is $10B more than the same period in 2020.

The “funding leapfrog” is largely explained by the enormous increase in “Growth Companies Funding” (GFC) which grew by 195%.

Over half of the “Growth Companies Funding” (GFC) was raised by dozens of new Israeli unicorns formed in the last years, and yet – nearly as much was raised by many other companies that raised growth rounds in 2021.

According to our data and our new ‘companies stages methodology’, young companies raise more money, and quicker than before and the capital raised in A-C Series boosted the total funding of “Growth Companies Funding”.

Looking at early-stage funding – the median deal size of early-stage funding reached a level of $6M (from 4M in parallel period), reflecting the prices increase across all early-stage rounds.

The average deal size of growth stage funding increased by 50%! Compared to last year ($51M Vs $34M).

The total capital in mega rounds is expected to surpass $10B at the end of 2021, with deal count climbing from 13 rounds in in Q1-Q3’20 to 53 rounds in Q1-Q3’21.

Q3 marked another 8 IPOs and SPACs of Israeli tech companies, and it seems like 2021 is about to crack the $100B bar in terms of public companies’ valuation in public debut.

M&A market showed recovery signs in Q1-Q3’21, both in total amount and in number of acquisitions (105), most of them are strategic in nature (not financial).

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