Japanese Investment of Israeli Tech Increases 15% in 2020

According to Harel-Hertz House Ltd (HIH) the first half of 2020 saw a 15% increase in investment ($472.3M USD) versus the same period from 2019 ($412 M).  Japanese companies invested a total of $821M USD in Israeli Technology in 2019.

Interestingly, the investments have been fewer in size, but larger in terms of capital.  In 2019, the average was $11.8M USD and in 2020, the average is $14.88M USD.

Globally, Israeli Tech companies have raised $5.2B USD in the first half of 2020 which means that Japanese investors account for 9% of all investments in Israeli Tech companies.

This trend seems to stem from the fact that many Japanese investment companies have a presence on the ground in Israel.  This includes companies like SBI, Corundum and Sumitomo.  In total, they account for 12 of the 25 investments.

Here is a breakdown of Israeli industries that Japanese companies have invested in:

As with all other industries right now, Israeli companies are facing challenging times ahead due to travel restrictions which means it’s impossible for Japanese companies to conduct field tests and/or meet in person.  In addition, the Japanese are not inclined to travel overseas in the current environment.