Declining investment is “something that Israeli tech will need to deal with,” says StageOne Ventures

“I think that something has changed in Israel. If I look at the 10 years between 2012 and 2021, these were terrific years for Israeli high tech and high tech in general, not only in Israel,” said Yuval Cohen, Founder and Managing Partner at StageOne Ventures. “What happened is that since 2022, we started seeing a major decline in investments in new companies that are established in Israel. And more specifically, since October last year, we have seen a major decline in new companies. And I believe that that's something that Israeli tech will need to deal with.”

Cohen made the remarks at the Paris Business Delegation hosted by Calcalist and Bank Hapoalim. The firm, which invests in early-stage companies, seeks Israeli companies looking at disrupting the enterprise world.

“It's pretty clear that when you look at the war and the political situation in Israel, this would challenge large institutional investors or even multinational companies based in Europe to operate in Israel, or even to invest,” he continued. “I can share with you our experience that since October we haven't seen new investors investing in our companies coming out of Europe, but we saw some American companies and investors and LPs. So you see the difference.”

You can watch the entire exchange in the video above.