Startup Companies in Times of Crisis - Insights

Cite As:
Shimoni Eyal, Katz Reuven, Nave Rafi, Hagar Maayan, Dayan Tamar, Tziperfal Sima. Startup Companies in Times of Crisis - Insights Haifa Israel: Samuel Neaman Institute, 2024.

In 2023, the Israeli high-tech sector faced a crisis in investment due to legal changes, a global economic downturn, and later, the impact of the Iron Sword conflict. The United States and Europe also experienced a decline in high-tech investments during this year, although at much lower rates than in Israel. Consequently, at the beginning of 2024, the high-tech industry, particularly startup companies, found themselves in a state of uncertainty. The decrease in investments significantly affects Israeli entrepreneurship and the ability to establish new startup companies, hindering sustainability.

To assist struggling startup companies, the Innovation Authority launched a rapid grant program in early November 2023, with a budget of 400 million shekels, aimed at supporting companies that were adversely affected by the war and had difficulty raising capital. Additionally, in January 2024, the Budget Division in the Ministry of Finance and the Innovation Authority announced a series of measures to strengthen the Israeli high-tech sector.

This research includes 25 in-depth interviews with executives from various fields within the startup industry to understand the challenges faced by these companies. It explores potential solutions and tools that can help them overcome difficulties and survive prolonged emergencies.

We hope that these tools will become integral considerations and ideas in the development processes, providing new financial instruments to assist early-stage startups during the challenging period they are expected to face.

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