JERUSALEM, Oct. 1 (Xinhua) -- Investments in Israeli financial technology companies have shown a sharp decline this year, the Israeli innovation community Fintech.IL announced in a report on Sunday.
Israeli fintech companies raised funds totaling 784 million U.S. dollars in the first three quarters of 2023, the report said, estimating that the year of 2023 will end with one billion dollars in total fintech fundraising, down from 2.98 billion dollars in 2022 and 7.48 billion dollars in 2021.
The number of funding transactions in Israeli fintech was only 44 in Jan.-Sept., with no real chance of reaching the annual figures of 165 transactions recorded in 2022, and 203 transactions made throughout 2021.
Only nine new fintech companies have been founded so far in Israel this year, with an estimated total of 12 in 2023, which is significantly fewer than the 2022 figure of 61 and the 2021 figure of 82.
Fintech.IL Director Shmuel Ben Tovim said the disappointing data are a result of the global hi-tech crisis and the negative sentiment in the Israeli market.
Fintech.IL is a non-profit organization founded in 2021 by Israel's Economy Ministry, with the participation of the Finance Ministry, the central bank, the securities and innovation authorities, and the National Digital Affairs Directorate.
The community aims to promote innovation in Israel's financial sector and provide the general public with advanced services and the Israeli business world access to a variety of quality and competitive services.