IVC-MEITAR ISRAELI TECH REVIEW Q3 2021

IVC-MEITAR ISRAELI TECH REVIEW Q3 2021

October 2021

2

Highlights

Israeli Tech Investments

5 Israeli High-Tech Investments: Quarterly

6 Projected vs Current # of Deals

7 Israeli High-Tech Investments: Annual

8 Pre-Seed + Seed Investments

9 Investments in Later Rounds

10 Largest Deals

11 VC-Backed Deals

12 Investments by Stages

13 Selected Top Investments

14 Investments in Selected Verticals

15 Israeli vs. Foreign Investments

16 Israeli vs. Foreign Investments: Round Type

17 First vs. Follow-on Investments

Israeli Tech Exits

19 Israeli High-Tech Exits (M&As, Buyouts, IPOs)

20 Israeli High-Tech Exits Under $5b

20 Israeli High-Tech M&As

21 Israeli High-Tech M&As by Deal Size

22 Israeli High-Tech M&As by Acquirer Country

23 Selected Top M&As

Israeli Tech In Capital Markets

25 Israeli High-Tech Public Companies Offerings

26 Public Offerings by Stock Exchange

27 Israeli High-Tech IPOs Post-Valuations

28 Initial Public Offerings – SPAC Transactions

Methodology

About

Contact Us

3

Highlights | Q1-Q3/2021

• Israeli high-tech capital raising soars to $17.8 billion in Q1–Q3/2021: A leap of 71% over annual 2020 figures;$5.89 billion in Q3.

• In addition to headline record amounts, deal numbers reach a new record. According to IVC’s estimation,projected 2021 deal numbers (p. 6) will reach 1800 deals, a 33% gain over 2020.

• Exceptional number of rounds—53 (each over $100m)—totaling $9 billion, 51% of total in Q1-Q3/2021. 114deals exceeding $50 million each compared to 145 such deals for the whole period of 2015–2020.

• Follow-on investments continue to climb to almost 60% of total number of investments compared to 56%over the whole of 2020

• Number of early rounds reaches 85% of annual 2020 figure, with capital raised in Q1–Q3/2021 surpassingentire 2020 amount by 35% and Israeli investors leading this upward trend

• Israeli high-tech exits skyrocket to $18.92 billion in Q1–Q3/2021 – up 92% from the annual 2020 results,mostly due to surge of IPOs with 65 deals (36% of all exits) and $9.78 billion (52% of total proceeds), leadingexits to their peak in this period.

ISRAELI TECH INVESTMENTS Q1-Q3/2021

4

96

4

82

8

57

9 950

1,1

03

1,4

81

1,0

66

65

2 91

8

989 1

,39

7

1,2

00

1,0

38 1,54

0

1,5

55

1,7

49

1,4

90 2,0

08

2,1

15

2,2

38

2,6

58

2,1

83

2,6

21

2,9

11

5,3

88

6,49

9

5,89

3

103

99

83 120

113

133

113

71 106

97 105

121

11

2

126

110

162

11

2

124

140

12

7

131

154

151

170

17

2

226

177

Q1/

15

Q2/

15

Q3/

15

Q4/

15

Q1/

16

Q2/

16

Q3/

16

Q4/

16

Q1/

17

Q2/

17

Q3/

17

Q4/

17

Q1/

18

Q2/

18

Q3/

18

Q4/

18

Q1/

19

Q2/

19

Q3/

19

Q4/

19

Q1/

20

Q2/

20

Q3/

20

Q4/

20

Q1/

21

Q2/

21

Q3/

21Total $m # of Deals

Israeli High-Tech Investments | Q1/2015 – Q3/2021

9.48.4

7.07.9

9.811.1

9.4 9.2 8.710.2

13.3

9.9 9.3

12.214.1

10.8

13.3

16.215.1

17.6

20.3

14.2

17.417.1

31.3

28.8

33.3

3.0 3.02.0

4.02.7 3.5

5.03.5 3.4

5.06.0

4.0 4.15.2 5.0

3.5

6.85.2 5.0 5.3 6.0 6.0

7.56.0

10.310.910.0

Q1/

15

Q2/

15

Q3/

15

Q4/

15

Q1/

16

Q2/

16

Q3/

16

Q4/

16

Q1/

17

Q2/

17

Q3/

17

Q4/

17

Q1/

18

Q2/

18

Q3/

18

Q4/

18

Q1/

19

Q2/

19

Q3/

19

Q4/

19

Q1/

20

Q2/

20

Q3/

20

Q4/

20

Q1/

21

Q2/

21

Q3/

21

Average $m Median $mSo

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r Is

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h R

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w Q

3/2

02

1

Israeli High-Tech Investments: Average vs. Median Q1/2015-Q3/2021 Israeli High-Tech Investments: Q1/2015-Q3/2021

5

Israeli high-tech capital raising continues to attract larger capital in Q3/2021 – $5.9 billion in 177 deals – an apparent increase from the quarterly $2.3 billion average raised in two past years.

The high median figure of $10 million and a continued increase in quarterly average volume ensured that mega deals determined capital raising over Q1–Q3/2021 and is expected to continue this year. Marking the current period is larger number of deals of over $50 million – more than twice the average in 2020.

Source: IVC-Meitar Israeli Tech Review Q3/2021

Israeli High-Tech Investments: Projected vs Current # of Deals*| 2015 – Q3/2021

6

* See our methodology for details

32

5

266

187

252

34

4

280

239

191

31

5

28

7

233 255

33

7

33

8

242

29

1 319

283

277

245

305

283

260 29

1

25

0 27

5

177

32

5

266

187

252

344

280

239

191

315

287

233 25

5

337

33

8

242 29

1 319

283

277

24

5

377

368

356

428

403

51

9

432

Q1

2015

Q2

2015

Q3

2015

Q4

2015

Q1

2016

Q2

2016

Q3

2016

Q4

2016

Q1

2017

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Q4

2018

Q1

2019

Q2

2019

Q3

2019

Q4

2019

Q1

2020

Q2

2020

Q3

2020

Q4

2020

Q1

2021

Q2

2021

2021

Q3

# of Deals Projected # of Deals

While the capital raised by Israeli high-tech companies in the first three quarters of 2021 captured the big headlines, the number of deals in 2021 also made outstanding progress. After years of steady growth per quarter, projected deal numbers – an estimated value of the real number of investments considering the late appearance of early round deals – have surged. If the pace continues, the overall number of deals this year could reach nearly 1800.


3,32

1

4,3

02

4,5

04 5,8

81

7,8

51

10,3

73

17,7

80

405

430

429

51

0

503

606

575

2015 2016 2017 2018 2019 2020 Q1-Q3/2021

Total $m # of Deals

90

6.45

944

.29

80

6.8

952.

55

509

.75

720

.59

8

75

8.8

05

655

1,20

8

1,1

80

876

855

1,43

3

1,2

42

2,71

3

1,88

2 2,07

6

2,54

1

2,46

1

1,56

7 1,86

5

59 43 29 50 47 57 63 35 53 80 50 40 49 57 66 84 70 72

67 58 52

Jan

-20

Feb

-20

Mar

-20

Apr

-20

May

-20

Jun

-20

Jul-

20

Au

g-2

0

Sep

-20

Oct

-20

No

v-20

Dec

-20

Jan

-21

Feb

-21

Mar

-21

Apr

-21

May

-21

Jun

-21

Jul-

21

Au

g-2

1

Sep

-21

Total $m # of Deals

Israeli High-Tech Investments | 2015 – Q1-Q3/2021

Israeli High-Tech Investments: Jan/2020-Sep/2021 Israeli High-Tech Investments: 2015-Q3/2021

7

Capital raised by Israeli high-tech companies in the first three quarters of 2021 surpassed the historical annual figures with a record $17.78 billion invested in 575 deals. This upward trend since March 2021, has led to a monthly average of $1.98 billion for Q1–Q3/2021 compared to $864 million monthly average in 2020.

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21

60 67 73 76 79 69 7081

67

66 74 69 89

59

1.8 2 2.1 2.25

3 33.4

0.25 0.22 0.29 0.18 0.1 0.1 0.12 0

0.5

1

1.5

2

2.5

3

3.5

4

0

10

20

30

40

50

60

70

80

90

100

2015 2016 2017 2018 2019 2020 Q1-Q3/2021

# of Seed Rounds # of Pre-Seed Rounds Seed Median $m Pre-Seed Median m$

Pre-Seed + Seed Investments | 2015-Q1-Q3/2021

8

Pre-Seed & Seed Deals: Amounts, Numbers and Median

904

1,2

19

99

9 1,6

43

1,8

51

1,8

65 2,5

24

24

8

28

7

26

6

32

1

32

0

34

3

29

3

1.3

2 2.1 2.5 2.5 2.5

4

2015 2016 2017 2018 2019 2020 Q1-Q3/2021

Early Rounds ($m) # of early Rounds Median Early Round ($m)

Early Rounds Totals: Amounts, Numbers and Median

Early round investment (seed + A round) deal making moved higher in Q1–Q3/2021, while capital investment volume continued to climb. The overall amounts in Q1–Q3/2021 already surpass 2020 amounts for both seed and A round deals.

The median amounts of seed deals almost doubled in 2015–Q3/2021, thanks to increased participation from institutional investors in Israeli seed and first rounds. On the other hand, the pre-seed median remains unchanged over this period (See Methodology)



https://www.ivc-online.com/Portals/0/RC/FundPRs/METHODOLOGY_Pre-Seed%20and%20Early%20Investment.pdf?ver=2021-04-08-124901-007&timestamp=1617875354739

298 316 157 206 227 205 258 169 243 284 412 289 294 548 338 537 361 384 402 519 525 635 847 5561,122 1,320 1,218

176 109 218 233 220 296 169 125 309 92 124 347 127454

369 218 476 390 615 585 502 577 356408

1,3601,656

1,233

331 107 5 259 379 597 240 200 219 318582 288

186

269 497 402 143776

688 6621,281 545

1,000 1,278

2,180

2,546

2,621

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21

B Round C Round Later Round

22 18 15 21 15 17 1811

1722 22 23 23

37

1724

1824 22 24 28 32 41

2834

40 38

11 8 1017 13 10

126 11

4 8 9 6 8 14 717 12

13 12 15 15 15 14

27 31

1612 9

212 11

15

9 6

13 13 12 9 10 12 1615

7

1113 10

20 16 15 24

35 31 30



Investments by Rounds | Q1/2015 – Q3/2021

Investments in Mid - Later Rounds $m: Q1/2015-Q3/2021

# of Deals in Mid - Later Rounds: Q1/2015-Q3/2021

9

12.19.5 9.3

712 12 8.9 15 14.5 11 12.5 12 10

1318 18.25 19.2 13.5 20 11.75 15 17.5

1515 15.25

27.5 28.5

8 9.85 18 1115 23 12 9 22.5 24.5

920 23.55 14.5 25

32 25 27.5 25 15.520 27 23.5 27.5 32 45 52.5

13.75 102.5 15

22 20 23 24 10 1730

11 2.2513.5

1617

13.6

40

25

60

15.2525

32

21.536

5035



Median $m in Mid - Later Rounds: Q1/2015-Q3/2021

The higher pace of investing inmid – later funding roundscontinued in Q3.The uptrend of quarterly roundnumbers was disrupted in Crounds for the first time sinceQ4/2018, while B rounds andlater financing numbers followed

the pattern.

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Largest Deals | Q1/2015 – Q3/202111

7

150 40

0

100 25

0

27

0

100 30

0

12

5

11

5 24

2

680

741 95

7 1,19

6

347

750 99

8

2,95

7

2,93

8

3,12

5

11

21 1

21 1 1 1 2

45

7

6

34

7

2018

15

Q1/

15

Q2/

15

Q3/

15

Q4/

15

Q1/

16

Q2/

16

Q3/

16

Q4/

16

Q1/

17

Q2/

17

Q3/

17

Q4/

17

Q1/

18

Q2/

18

Q3/

18

Q4/

18

Q1/

19

Q2/

19

Q3/

19

Q4/

19

Q1/

20

Q2/

20

Q3/

20

Q4/

20

Q1/

21

Q2/

21

Q3/

21

Capital $m >$100m # of Deals >$100m

24

7

240

50 119

222 50

0

150

192

311

100 50

8

416

150

620

613

429.

6

40

7

969 11

67 1375

.5

1555

799.

5

1072

1536

3983

4473

4392

3 21 2 3 4 3 3

5 1 5 4 26

96 5

912 13 12

10 9

16

36 43

35

Q1/

15

Q2/

15

Q3/

15

Q4/

15

Q1/

16

Q2/

16

Q3/

16

Q4/

16

Q1/

17

Q2/

17

Q3/

17

Q4/

17

Q1/

18

Q2/

18

Q3/

18

Q4/

18

Q1/

19

Q2/

19

Q3/

19

Q4/

19

Q1/

20

Q2/

20

Q3/

20

Q4/

20

Q1/

21

Q2/

21

Q3/

21

Capital $m >$50m # of Deals >$50m

Deals Over $50m: Q1/2015-Q3/2021Deals Over $100m: Q1/2015-Q3/2021

10

The third quarter continued the high pace of mega deal making (over $100m), responsible for a 53% share of the quarterly capital, compared to the31% quarterly average share of such deals in 2020. As expected, the number of mega deals did not maintain the Q1 levels, and it remains to be seen ifthere is a change in the trend.In total, mega deals accounted for 51% of total capital raised in Q1–Q3/2021. 38 deals over $50 million closed quarterly, compared to an average of 12deals in 2020.

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VC-Backed Deals | Q1/2015 – Q3/20218

52

367

472 85

5

781 99

7

817

43

9 756

835 1

,21

9

742

859

878

1,34

1

1,46

4

1,35

0 1,75

0

1,72

7

2,02

1 2,46

3

1,90

8

2,20

4

2,5

56

5,19

2

5,5

12

5,27

4

6256 55

83

65

88

69

44

59

71 7265

74 74 74

99

7281 85 85 86

96105 106

135

164135

0

20

40

60

80

100

120

140

160

180


Total VC-Backed $m # of VC-Backed Deals

VC-Backed Deals: Q1/2015 – Q3/2021

11

*Deals where at least one VC fund (Israeli or Foreign) was involved

VC-backed deals continued their growth trend, accounting for 76% of all deals in Q3/2021 and contributed 90% of the quarter’s total invested capital. 2021 is on the path to be a record year in the level of VC participation in Israeli tech.

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Investments by Stages | Q1/2015 – Q3/202136

4

154

211

260

375

418

272

170

205

291

356

250

325

300

243

584

295

314

286

413

466

399

406

447

301

611

546

601

674

36

8

690 72

8

1,0

62

794

48

2

712

698 1,0

41

950

713 1

,24

0

1,3

13

1,1

65

1,1

95 1,6

94

1,82

9

1,82

5

2,1

92

1,7

84

2,2

15

2,4

64

5,0

87 5,8

88

5,3

47

67

56 58

6673

85

57

41

61

46

56

6662

6149

95

49

6470

63

5376

66

77

57

92

72

3643

25

54

40

48

56

30

4551 49

5550

6561 67

63

60

70

64

78

7885

93

115134

105


Early Stage $m Growth Stage $m # of Deals in Early Stage # of Deals in Growth StageEarly Stage: Seed & R&D CompaniesGrowth Stage: Companies with revenues

Capital Investments by Stage: Q1/2015-Q3/2021

12

After almost five years, Q3/2021 was the first quarter to show a meaningful downturn in the number of deals in growth stage companies. While thenumbers are still record high, it remains to be seen whether this drop is just a one-time event or signals the beginning of a change in investors’preferences.

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10companies raised

$2.54Beach deal

over $200m.

Selected Top Investments | Q3 2021

13

IT & Enterprise SoftwareEnterprise Apps

$250m$275m

$200m$235m

Wireless Communication

$300m


$310m

Security Security

IT & Enterprise Software

SecurityIT & Enterprise Software

$300m

IT & Enterprise SoftwareSecurity

$215m $200m

IT & Enterprise Software InternetOnline AdvertisingEnterprise Apps

Semiconductors



$250m


19

2

14

2

17

2524

27

22

37

22

14

116

1

7

19

1

26

21

37

23

3 5

87

7

118

1413

15

6

2

18

15

1

19

1

222

19

34

15

Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21

Cyber Security FinTech FoodTech IoT

Investments in Selected Verticals | Q1/2019 – Q3/2021

215

607489 437

622517 532

1,039

1,439 1,497 1,541

164

412529

796

30

442 516 549

1,351

1,752

1,434

26 75 80 37 11 172 80 131 132 222 125229380

149 194

438276 204

594426

734858

2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3

Cyber Security FinTech FoodTech IoT

Investments by Verticals $m: Q1/2019-Q3/2021

14

# of Deals by Verticals: Q1/2019-Q3/2021

The amounts raised by Cyber Security, Fintech, IoT and FoodTech companies peaked in Q2/2021, with the number of deals in those verticalsdeclining in Q3. The Cyber and Fintech clusters captured 50% of the total volume for the quarter. Two mega rounds in IoT companies – Wiliot &AnyVision – contributed to the upsurge in vertical funding during Q3/2021.

Source: IVC-Meitar Israeli Tech Review Q3/2021Sou

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Israeli vs. Foreign Investments | Q1/2019 – Q3/2021

969

1,339

1,5421,706

2,120

1,528

1,874 1,925

3,752

4,623

4,276

512649

503 518 514 577 658810

1,226

1,602

1,234

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 20210

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Foreign Investments ($m) Israeli Investments ($m)

Israeli vs. Foreign Investments $m: Q1/2019 – Q3/2021

15

290341

345 347377

447 435 435

590

717

619

331 343

318275

314

415 417 431 417

662

565

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 20210

100

200

300

400

500

600

700

800

# of Foreign Investments # of Israeli Investments

Israeli vs. Foreign Investments: Q1/2019 – Q3/2021

Israeli and foreign investors have kept a stable course of activity during the first quarters of 2021, increasing their investments gradually after a slightdecrease in foreign investor participation during Q2 – Q4/2020.


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Israeli vs. Foreign Investments by Round Type | Q1/2019 – Q3/2021

107

138141 143

107

150130

153

111

230220

1… 192 210

164

140

206 212

242

167

310300

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 20210

50

100

150

200

250

300

350


Israeli vs. Foreign Investments in Seed Rounds: # of Investments Q1/2019 – Q3/2021

16

183203

204 204

270297 305

282

479 487

399

1… 151

108 111

174209 205 189

250

352

265

Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 20210

100

200

300

400

500

600


Israeli vs. Foreign Investments in Later Rounds:# of Investments Q1/2019 – Q3/2021

Source: IVC-Meitar Israeli Tech Review Q3/2021 Source: IVC-Meitar Israeli Tech Review Q3/2021

First vs. Follow-on Investments | Q1/2019 – Q3/2021

17

801889 972

1214

1290

1839

2118

1015 10761156

1325

13021433 1457

2015 2016 2017 2018 2019 2020 Q1-Q3/20210

500

1000

1500

2000

2500

# of Follow-on Investments # of First Investments

# of First vs. Follow-on Investments: 2015 till Q3/2021

1,1651,543

1,718

2,0983,412

5,081

8,175

2,1522,756 2,698

3,709

4,3264,925

8,537

2015 2016 2017 2018 2019 2020 Q1-Q3/20210

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Follow-on Investments $m First Investments $m

First vs. Follow-on Investments $m: 2015 till Q1-Q3/2021

Starting in 2020, follow-on investments have supplied larger amounts and higher numbers to Israeli tech, which traditionally veered toward early-round investments. The gap between the numbers of follow-on vs. first-time investments will probably widen as long as new Unicorns are regularlyrevealed.

Source: IVC-Meitar Israeli Tech Review Q3/2021Source: IVC-Meitar Israeli Tech Review Q3/2021

ISRAELI TECH EXITS Q1-Q3/2021

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Israeli High-Tech Exits (M&As, Buyouts, IPOs) | 2015 till Q1-Q3/2021

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8,325

10,006

23,777

12,609

22,130

9,830

18,920

137

135

149

138

159

142

180

0

20

40

60

80

100

120

140

160

180

200

0

5,000

10,000

15,000

20,000

25,000

2015 2016 2017 2018 2019 2020 Q1-Q3/2021

Exits Amount $m # of Exits

Israeli High-Tech Exits: 2015 till Q1-Q3/2021

Israeli high-tech exits’ proceeds peaked in Q1–Q3/2021, approaching the record figures in 2017 and 2019, when two exceptional acquisitions elevatedthe total exits proceeds – Mobileye acquired by Intel for $15.3 billion and Mellanox acquired by NVIDIA for $7.4 billion.

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Israeli High-Tech Exits (M&As, Buyouts, IPOs) | 2015 till Q1-Q3/2021

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6,532

8,848

6,608

8,997

12,293

4,206

7,589

1,185

1,132

1,429

3,362

2,014

4,010

1,552609

26

440

250

424

1,614

9,779137 135

148138

158

142

180

0

20

40

60

80

100

120

140

160

180

200

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2015 2016 2017 2018 2019 2020 Q1-Q3/2021

M&As Amount $m Buyout Amount $m IPOs Amount $m # of Exits

Israeli High-Tech Exits $m: 2015 till Q1-Q3/2021

For the first time in history Israeli high-tech IPO activity surpassed M&A proceeds and accounted for 52% share of total capital proceeds in Q1-Q3/2021, leading total exits to the record achievements.

* Including IPOs, M&As & Buyouts * Exits under $5b

124 124 126 121142

117107

5 5 99

7

58

8 613

8

9

20

65137 135

148138

158

142

180

2015 2016 2017 2018 2019 2020 Q1-Q3/2021

# of M&As # of Buyout Deals # of IPOs # of Exits

# of Israeli High-Tech Exits: 2015 till Q1-Q3/2021

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Israeli High-Tech M&As by Deal Size <$5b | 2015 till Q1-Q3/2021

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291 310 254 221 321 259 236

2,0191,259 805 1,435 1,367 1,358 1,462

3,647

2,557

5,368

1,753

5,259

1,749

5,088

510

1,454

510

1,850

2,809

1,000

2,355

1,2504,400 1,100

7,100

4,550

3,850

0

2000

4000

6000

8000

10000

12000

14000

16000

2015 2016 2017 2018 2019 2020 Q1-Q3/2021

<$20m $20m-$100m $100m-$500m $500m-$1000m >$1000m

Israeli High-Tech M&As by Size $m: 2015 till Q1-Q3/2021

In Q1–Q3/2021, M&A proceeds have approached annual 2020 results, with the majority of this year’s proceeds (56%) from deals in $100m to $500mrange. M&A numbers this period thus far remain proportionally similar to the same period in 2018–2019, with proceeds 29% higher than in the firstthree quarters of 2020, which were affected by COVID-19.

* M&As & buyouts under $5b

7692 94 91 90 89

62

37

25 17 25 3022

30

14 9 22 9

22

7

19

1 21

2

4

14

1 11

3

3

3

0

20

40

60

80

100

120

140

160

2015 2016 2017 2018 2019 2020 Q1-Q3/2021

<$20m $20m-$100m $100m-$500m $500m-$1000m >$1000m

Israeli High-Tech M&As by Size: # of Deals: 2015 till Q1-Q3/2021

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Israeli High-Tech M&As by Acquirer Country*| 2015 till Q1-Q3/2021

22

595 1,080 746 593 772 507 1,249

4,1313,709

3,562

9,62910,279

8,135 6,456

2,991

5,191

3,730

2,138

5,238

6881,436

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2015 2016 2017 2018 2019 2020 Q1-Q3/2021

Israel United States Other Countries

Israeli High-Tech M&As by Acquirer $m: 2015 till Q1-Q3/2021

In Q1-Q3/2021, 49% of all Israeli high-tech M&A transactions were made by US acquirers, the highest share so far, while Israeli acquirers took morecautious approach, with 32% share, as compared to 40% of total number of M&As in 2020. In capital volume, the first three quarters of 2021 havealready reached the 2020 figure, therefore building up the expectations for the annual results that will surpass this landmark.

* M&As & buyouts under $5b

Israeli High-Tech M&As by Acquirer: # of Deals: 2015 till Q1-Q3/2021

43 43 44 37 42 4937

56 58 5958

72 53

56

30 28 3235

39

2022

0

20

40

60

80

100

120

140

160

180

2015 2016 2017 2018 2019 2020 Q1-Q3/2021

Israel United States Other Countries

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10 M&As

Summed up to$4.3B – 47% of total

each deal

over $200m

Top Israeli High-Tech M&As | Q3 2021

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Communications

Broadcast

$500m$500m

$200m$374mDigital Health

$580m

SemiconductorsWireless Communications

$600mSecurity Enterprise Apps


Enterprise AppsIT & Enterprise Software

$575m


Enterprise Apps

$300m $275m

Internet IT & Enterprise Software

Enterprise AppsOnline EntertainmentLife Sciences

IT & Enterprise SoftwareSecurity


$400mAcquired by

Akamai

Acquired bySynaptics

Acquired byZoomInfo

Acquired byCisco

Acquired byCarlyle

Acquired byRapid7

Acquired byHPE

Acquired byVoodoo

Acquired byCheck Point


ISRAELI TECH IN CAPITAL MARKETS Q1-Q3/2021

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9,706

916 838 1,255 1,6255,452

5,740

609

26 440 250 424

1,614

9,779

84

6169 69

79

131

73

8 613

89

20

65

2015 2016 2017 2018 2019 2020 Q1-Q3/2021

Folow-on Public offerings $m IPOs $m # of Folow-on Public offerings # of IPOs

Israeli High-Tech Public Companies Offerings | 2015 till Q1-Q3/2021

* Including: IPOs, Follow-ons (including registered direct), PIPEs, equity and debt

Israeli High-Tech Public Activity: 2015 till Q1-Q3/2021

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In Q3/2021, 17 Israeli high-tech companies raised $1.36 billion in IPO transactions – 14% of all IPO volume in 2021 till now. The two most prominent IPOs this quarter were made on Wallstreet: Riskified with $418m raised valued at $3.3b and REE Automotive raising $288m, valued at $3.1b post transaction.

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4.2 165 3521,084561 230

238 4071,156

8,651

4822

46 12 17

105

44

2015 2016 2017 2018 2019 2020 Q1-Q3/2021

TASE $m Wallstreet $m Other $m

Israeli High-Tech IPOs by Stock Exchange | 2015 till Q1-Q3/2021

Israeli High-Tech IPOs by Stock Exchange $m: 2015 till Q1-Q3/2021

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Israeli Stock Exchange woke up from slumber in 2021, when 42 Israeli high-tech companies chose to make an IPO exits on TASE. This adds up to the 20 IPO exits on Wallstreet and some other regions – advancing to the record figures in Q1-Q3/2021. The third quarter slowed down a bit, still above the averages of previous years.

1 310

42

6 3 5 5

8

20

25

73 4

2

3

2015 2016 2017 2018 2019 2020 Q1-Q3/2021

TASE Wallstreet Other

# of Israeli High-Tech IPOs by Stock Exchange: 2015 till Q1-Q3/2021

Leading IPOs in Q3/2021:

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3,540 81 1,806 802 1,910 8,319

76,389

86

13

8 9

20

65

0

10

20

30

40

50

60

70

2015 2016 2017 2018 2019 2020 Q1-Q3/2021

Post-Valuation $m # of IPOs

Israeli High-Tech IPOs by Post-Valuation | 2015 till Q1-Q3/2021

Israeli High-Tech IPOs by Post-Valuation: 2015 till Q1-Q3/2021

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Israeli high-tech companies that chose to join capital markets were valued rather high post IPO transactions in Q1-Q3/2021. The two outstanding companies to note this year were Playtika valued at $13 billion and IronSource valued at $11 billion.

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Israeli High-Tech IPOs – SPAC Deals| Q1-Q3/2021

Israeli High-Tech IPOs – SPAC Deals Q1-Q3/2021

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In Q1-Q3 2021, eleven Israeli high-tech companies preferred to go for SPAC IPO proceeds raising $2.91 billion or 30% share of total IPO values in this period. The majority of companies were in life science raising $1.26 billion (43% of total capital volume) on capital markets.

21

2,391

501

1

6

4

0

1

2

3

4

5

6

7

2021 Q1 2021 Q2 2021 Q3

Total Amount $m # of Deal


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Methodology – General

• This report contains information derived from the IVC-Online Database. Deal numbers and values may vary across our reports due to continuous updates of historical numbers inthe IVC data base.

• This report summarizes activities of Israeli and Israel-related high-tech companies between 2015-Q3/2021. "Israel-related" refers to a company which is not incorporated in Israelbut has senior Israeli management

• Up-to-date information is available to IVC Industry Analytics subscribers.

• The report is based on data last updated on September 30th.

Methodology – Investments

• This report reviews capital raised by Israeli tech companies from Israeli and foreign venture capital funds as well as other investors, such as investment companies, corporate investors,incubators and angels.

• Reported data presents the investments activity IVC collects from reliable media sources, and direct reports gathered by IVC’s information specialist team. In order to compare the data toprevious periods, the data in IVC’s database are normalized to include only the known published data for each quarter or year.

• Projected data covers the gap in knowledge about Seed companies' activity. Since most of the information about Seed companies comes to light 12 to 24 months after the closing took place, theprojected data shows the reported data multiplied by a constant (factor) that helps to understand the real impact of activity in Seed companies over the long run. READ MORE HERE

• The report is based on data from 610 investors of which 113 were Israeli VC funds and 497 were other entities.

• The term ‘Early-Stage Companies’ refers to high-tech companies in the process of development and not yet offering products to the market.

• The report covered total investments in the Israeli venture capital sector, including both VC-backed rounds where at least one investor participating in the round was a VC fund, as well as dealsnot backed by venture capital funds.

• The report includes amounts received by each company directly, including direct transactions performed between company shareholders.

• Most companies fall within more than one technology cluster, therefore the data regarding tech clusters should be viewed separately per cluster.

29

https://www.ivc-online.com/Portals/0/RC/FundPRs/METHODOLOGY_Funding%20Rounds%20Deals%20Projection.pdf?ver=2021-04-08-125243-423&timestamp=1617875586242

Methodology – Exits

• Our Exit Report historically referred to “Exits” as including M&A, Buyouts and IPO. This report is now dedicating a separate chapter for IPOs, as part of the Public Capital Marketactivity.

• The report summarizes M&As of Israeli and Israel-related high-tech companies in merger & acquisition deals, as well as buyouts performed by private equity and financialinvestors in Israeli and Israel related high-tech companies between 2015-Q3/2021.

Methodology – Capital Markets

• Deal numbers and proceeds are extracted from public records.

• Registered direct deals and Follow-On Deals are bundled together.

• Primary transactions (both IPOs and follow-ons) include any secondary offerings consummated therewith.

• PIPE deals are analyzed as part of public Israeli high-tech companies’ capital markets activity section

30

ABOUT

31

http://meitar.com/

Meitar Law Offices is Israel’s leading internationallaw firm and the undisputed leader in thetechnology sector. The firm's Technology Groupnumbers over 120 seasoned professionals whospecialize in representing technology companies,cooperating with attorneys from complementarypractice areas, such as taxation, intellectualproperty and labor law, and dozens of attorneysfrom other practice areas.

Meitar has played a significant role in the majorityof the largest and most prominent transactionsrecorded in the Israeli technology sector,including mergers and acquisitions and publicofferings on foreign stock exchanges.

The firm is uniquely qualified to work withcompanies throughout their entire corporate “lifecycle”. The firm advises clients from their initialestablishment through raising seed capital tosuccessful exit.

Alongside emerging companies, Meitarrepresents high growth companies, and hasrepresented the majority of the Israeli technologycompanies that have carried out initial publicofferings in the US, as well as a diverse range ofmultinational companies from the US, China andEurope.

The firm represents most of the major venturecapital funds active in the Israeli technology

sector, and played an active role in formation ofsome of the most successful and well-knownfunds in the industry.

Meitar is unique among Israel’s largest law firmsin the number of partners who have worked formajor international law firms in the US andelsewhere. The firm maintains close workingrelationships with leading firms from around theworld to provide our international and Israeliclients with the highest level of service andquality – in line with the finest law firms fromacross the globe.

ABOUT

http://meitar.com/

http://meitar.com/

ABOUT

Founded in 1997, IVC Research Center is theleading data source and business informationcompany in Israel's high-tech industry.

We help our clients understand the market, makeconnections and identify opportunities withaccess to the latest news, trends anddevelopments.

From venture capital and private equity funds to

industry leading companies and emergingstartups across Israel's varied high-tech sectors,we cater to the varied business informationneeds that make up the Israeli high-techecosystem. We bring more than 20 years ofexperience of gathering and analyzing data,serving the IVC community. Our dedicated teamof industry researchers and analysts has deepknowledge and hands-on experience workingwith Israel’s high-tech sector.

Our management, professional sales andmarketing teams drive IVC’s commitment toexcellence and client service. We enable a widerange of local and global clients, includingentrepreneurs, local and foreign investors of alltypes and service providers such as lawyers andaccountants, to get to know the Israeli high-techecosystem better.(Registered Database #366723)www.ivc-online.com

32

http://www.ivc-online.com/

http://www.ivc-online.com/

CONTACT US

Lian SwirskyHead of Marketing and Business Development

Meitar Law Offices

[email protected]

www.meitar.com

+972-(0)3-610-3100

33

THE AUTHORS

Itay Frishman Partner, Meitar | Law Offices [email protected]

Mike Rimon Partner, Meitar | Law Offices [email protected]

Shira Azran, Partner, Meitar | Law Offices [email protected]

Marianna ShapiraResearch Director, [email protected]

Marianna ShapiraResearch Director

IVC Research Center

[email protected]

www.ivc-online.com

+972-(0)73-212-2339

mailto:[email protected]

http://www.meitar.com/

https://www.linkedin.com/company/meitar-liquornik-geva-leshem-tal/

https://www.facebook.com/meitarlaw/

https://twitter.com/IVCOnline_IL

https://www.linkedin.com/company/ivc-research-center/

https://www.facebook.com/IVCData/






http://www.meitar.com/

https://meitar.com/people/azran_shira

https://meitar.com/people/rimon_mike

https://meitar.com/people/itay_frishman

C O P Y R I G H T S

2021

34

The information contained in this report is derived from IVC-Online -the IVC Research Center Ltd. ("IVC") Database.

This report is copyrighted, no part of the material in this report(including, but not limited to text, content, and images) may bereproduced, republished or utilized in any form or by any meanswithout the explicit and prior written consent of IVC.

Documents

IVC-MEITAR ISRAELI TECH REVIEW Q3 2021