Israeli FinTech investment declined 19% in 2022, remains double 2020 levels


Israeli FinTech investment stats in 2022:
• Israeli FinTech investment drops 19% to $2.9bn in 2022 from previous year
• FinTech deal activity reached 144 deals in 2022, a 26% drop compared to 2021
• CyberTech remained the most active FinTech subsector in Israel last year

Israel’s FinTech sector saw a drop in both investment and deal activity in 2022. Israeli FinTech funding reached $2.9bn, a 19% drop from 2021’s record breaking year. Israeli FinTech investment in 2022 increased more than two-fold from 2020 levels. FinTech deal activity saw a 26% drop in 2022 from the previous year although activity is still 14% above 2020 levels. Overall, there were 144 deals raised by Israeli FinTech companies in 2022.

Guesty, a property management platform, completed the largest FinTech deal in the country during 2022, raising $170m in their latest Series E funding round, led by Apax Digital, MSD Partners and Sixth Street Partners. The company intends to use the funds to scale global operations to meet demand, secure key acquisitions, and expand into new business verticals. “Despite an exceptionally challenging fundraising climate, the funding Guesty has raised is a vote of confidence in the travel and short-term rental ecosystem, and an endorsement of our pioneering technology and position as the market leaders of the hospitality and property management software sector,” said Guesty’s Co-founder & CEO, Amiad Soto.

CyberTech remained the most active FinTech sector in 2022 with 64 CyberTech companies raising funding in the country, a 44% share of deals announced in 2022. Revenue in Israel’s Cybersecurity market is projected to reach $900m in 2023 and is expected to show an annual growth rate (CAGR 2023-2027) of 10.8%, resulting in a market volume of $1.35bn by 2027.

The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2023 FinTech Global

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