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
urc
e: IV
C-M
eita
r Is
rael
i Tec
h R
evie
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.
Source: IVC-Meitar Israeli Tech Review Q3/2021
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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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)
Source: IVC-Meitar Israeli Tech Review Q3/2021
Source: IVC-Meitar Israeli Tech Review Q3/2021
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
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
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
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
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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Source: IVC-Meitar Israeli Tech Review Q3/2021
Source: IVC-Meitar Israeli Tech Review Q3/2021
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
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
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
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
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
IT & Enterprise SoftwareEnterprise Apps
$310m
Security Security
IT & Enterprise Software
SecurityIT & Enterprise Software
$300m
IT & Enterprise SoftwareSecurity
$215m $200m
IT & Enterprise Software InternetOnline AdvertisingEnterprise Apps
Semiconductors
IT & Enterprise SoftwareEnterprise Apps
IT & Enterprise Software
$250m
Source: IVC-Meitar Israeli Tech Review Q3/2021
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.
Source: IVC-Meitar Israeli Tech Review Q3/2021
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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
# of Foreign Investments # of Israeli Investments
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
# of Foreign Investments # of Israeli Investments
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
19
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
20
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
21
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
IT & Enterprise Software
Enterprise AppsIT & Enterprise Software
$575m
IT & Enterprise Software
Enterprise Apps
$300m $275m
Internet IT & Enterprise Software
Enterprise AppsOnline EntertainmentLife Sciences
IT & Enterprise SoftwareSecurity
IT & Enterprise Software
$400mAcquired by
Akamai
Acquired bySynaptics
Acquired byZoomInfo
Acquired byCisco
Acquired byCarlyle
Acquired byRapid7
Acquired byHPE
Acquired byVoodoo
Acquired byCheck Point
Source: IVC-Meitar Israeli Tech Review Q3/2021
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
Source: IVC-Meitar Israeli Tech Review Q3/2021
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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
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
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
CONTACT US
Lian SwirskyHead of Marketing and Business Development
Meitar Law Offices
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
www.ivc-online.com
+972-(0)73-212-2339
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.