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☆ Israel tech fundraising suffers 65% annual slump in second quarter
▼ + stars: | 2023-06-28 | by ( Steven Scheer | ) www.reuters.com time to read: +2 min

Classiq/Handout via REUTERS/File PhotoJERUSALEM, June 28 (Reuters) - Fundraising by Israeli technology firms slumped 65% in the second quarter compared to the same period last year, data showed on Wednesday, as political turmoil in the country exacerbated a global slowdown in the sector. Israeli tech companies raised nearly $16 billion in 2022. But that was mainly in the first half, before the global economic slowdown, higher interest rates and weak stock markets hit. Between April and June, there were only 100 deals and only one was above $200 million, the report said. High-tech had been the fastest growing sector in Israel for a decade, accounting for 14% of jobs and almost a fifth of economic output.

Persons: Yoni Zimmermann, Steven Scheer, Conor Humphries Organizations: REUTERS, IVC Research, Israel Innovation Authority, LeumiTech, Thomson Locations: Tel Aviv, Israel, Handout, cybersecurity, Israeli

☆ Israel's tech sector troubles persist in 2023, state agency says
▼ + stars: | 2023-06-26 | by ( ) www.reuters.com time to read: +2 min

A global tech downturn began in the second half of 2022 when inflation and interest rates began to rise and supply chains faltered. But as the negative trends appear to be reversing elsewhere, the problems in Israel have continued in 2023, the Innovation Authority said in its latest report. The Innovation Authority said that "senior figures" in Israel's tech industry had warned of a backlash and of "foreign investors' concerns about continued investment in Israel." So far in 2023, the Nasdaq has risen 29%, while Israel's main technology index (.TATECH) is up 7.8%. "Insofar as this trend persists, it may have an adverse effect on the economy in the long term," Yaron said.

Persons: Benjamin Netanyahu's, Amir Yaron, Yaron, Ari Rabinovitch, Steven Scheer, Mark Potter Organizations: Israel Innovation Authority, Innovation Authority, Nasdaq, Bank of Israel, Thomson Locations: Israel, Tel Aviv

☆ Israel's Percepto gets U.S. FAA waiver for drone use, raises $67 mln
▼ + stars: | 2023-06-12 | by ( ) www.reuters.com time to read: +1 min

Heavy industry confronts major challenges to operate efficiently, maintain reliable critical infrastructure, meet high productivity expectations, and increase safety levels - all in the face of complex, hazardous and often aging infrastructure assets. Percepto said it helps industrial companies meet challenges such as maintaining reliable critical infrastructure, meeting high productivity expectations, and increasing safety levels through real-time visibility into their facility's infrastructure integrity, and finding failures before they escalate into incidents. It said it received a nationwide Beyond Line of Sight waiver from the U.S. Federal Aviation Administration, allowing the company to provide any U.S. critical infrastructure site with remotely-operated automated drones without the need for site specific approvals from the FAA. Percepto said this waiver removes logistical and cost barriers, such as the need for radars or people on the ground, fuelling the adoption of autonomous drone technology. In total, Percepto has raised $120 million.

Persons: Percepto, Arkin, Steven Scheer, David Evans Organizations: U.S . Federal Aviation Administration, FAA, Koch Disruptive Technologies, Zimmer Partners, U.S, Venture Partners, Delek US Holdings, Atento, Spider Capital, Arkin Holdings, Thomson

☆ Israeli institutional tech investment down 40% in 2022 - report
▼ + stars: | 2023-06-12 | by ( Steven Scheer | ) www.reuters.com time to read: +2 min

Over the second half of last year, just 16 investments were made by Israeli institutional investors - four of those being early stage seed deals. But institutional investors have not been a big part of its success, with most investment coming from venture capital funds. Led by mostly foreign VCs, Israeli tech firms raised some $15 billion in 2022. Nimrod Vromen, chief executive of Consiglieri, said that institutions last year had more inclination for early stage investments. "Israeli institutional investors’ experience in early stage investments, combined with the Israeli government’s commitment to supporting the startup ecosystem amidst political legislative turbulence, signals potential for future investment growth," he said.

Persons: Arnon Segev, Yoav Sherman, Nimrod Vromen, Vromen, Steven Scheer, Ed Osmond Organizations: Israel Innovation Authority, Israel Venture Capital, Thomson

☆ OpenAI CEO sees 'huge' Israeli role in reducing risks from the technology
▼ + stars: | 2023-06-05 | by ( Steven Scheer | ) www.reuters.com time to read: +3 min

[1/3] A view shows banners on the Tel Aviv University campus as Sam Altman, CEO of Microsoft-backed OpenAI and ChatGPT creator is due to speak in Tel Aviv, Israel June 5, 2023. REUTERS/Amir CohenTEL AVIV, June 5 (Reuters) - OpenAI CEO Sam Altman predicted on Monday a "huge role" for Israel in reducing risks from artificial intelligence and eyed investment opportunities in the country even as it debates whether and how to regulate the technology behind ChatGPT. "The energy on making use of the technology and its positive benefits is fantastic to see, and I am sure Israel will play a huge role." Visiting Microsoft Corp's R&D centre in Israel, Altman was asked whether his company might also open a local office. Israel published a 115-page draft AI policy in October and is collating public feedback ahead of a final decision.

Persons: Sam Altman, Amir Cohen TEL, Altman, Isaac Herzog, OpenAI, ChatGPT, Ziv Katzir, Benjamin Netanyahu, Dan Williams, Emelia Sithole, Alex Richardson Organizations: Tel Aviv University, Microsoft, REUTERS, ChatGPT, crisscrossing, Stanford University, European, Israel Innovation Authority, Reuters, Thomson Locations: Tel Aviv, Israel, Amir Cohen TEL AVIV, crisscrossing Europe, Jordan, Qatar, United Arab Emirates, India, South Korea, United States, Britain, Canada, U.S

[1/2] Visitors stand next to a "Make In India" logo during a three-day semiconductor event in Bengaluru, India, April 30, 2022. They were from the Vedanta-Foxconn JV; a global consortium ISMC which counts Tower Semiconductor (TSEM.TA) as a tech partner; and from Singapore-based IGSS Ventures. SETBACK FOR VEDANTAMost of the world's chip output is limited to a few countries like Taiwan, and India is a late entrant. Amid much fanfare, in September, the Vedanta-Foxconn JV announced its chipmaking plans in Gujarat. Modi called the $19.5 billion plan "an important step" in boosting India's chipmaking ambitions.

Persons: Munsif, India's Modi, Taiwan's Foxconn, Narendra Modi, IGSS, Rajeev Chandrasekhar, Modi, Foxconn, STMicro, Chandrasekhar, David Reed, Aditya Kalra, Jane Lanhee Lee, Steven Scheer, Nick Zieminski Organizations: Visitors, REUTERS, Companies, Intel, India's Vedanta, Vedanta, IGSS Ventures, JV, Reuters, Orbit, Foxconn JV, Twitter, Thomson Locations: India, Bengaluru, DELHI, OAKLAND , California, Singapore, Gujarat, Taiwan, New Delhi, Oakland , California

☆ Nvidia to build Israeli supercomputer as AI demand soars
▼ + stars: | 2023-05-29 | by ( Steven Scheer | ) www.reuters.com time to read: +2 min

JERUSALEM, May 29 (Reuters) - Nvidia Corp (NVDA.O) said on Monday it was building Israel's most powerful artificial intelligence (AI) supercomputer to meet soaring customer demand for AI applications. Gilad Shainer, a senior vice president at Nvidia, said Nvidia worked with 800 startups in Israel and tens of thousands of software engineers. Shainer said AI was the "most important technology in our lifetime" and that to develop AI and generative AI applications large graphics processing units (GPUs) were needed. Nvidia bought Israeli chip designer Mellanox Technologies in 2019 for nearly $7 billion, outbidding Intel Corp.Shainer said Nvidia's first priority for the supercomputer was its Israeli partners. Last week, Nvidia said it had worked with Britain's University of Bristol to build a new supercomputer using a new Nvidia chip that would compete with Intel and Advanced Micro Devices Inc.

☆ Israel watchdog seeks data from banks in interest rate probe
▼ + stars: | 2023-05-28 | by ( Steven Scheer | ) www.reuters.com time to read: +2 min

In a bid to rein in inflation, the Bank of Israel last week raised its benchmark interest rate by another 25 basis points to a 2006 high of 4.75%, its 10th straight hike of the key rate that stood at 0.1% last April. Mortgage and loan payments, often tied to both inflation and the central bank's rate, have in turn jumped. Banks have been slow to pass on the benefits of higher rates to customer deposits, the Competition Authority said. The Competition Authority, formerly the anti-trust authority, said it had launched the investigation in 2022 when interest rates were starting to rise, and based on preliminarily results, it asked banks last week to provide more data. Yair Avidan, the supervisor of banks, last week told reporters that 82% of the rate hikes have been passed on to customers.

☆ Bank of Israel to raise rates 25 bps next week, may be last in cycle
▼ + stars: | 2023-05-18 | by ( Steven Scheer | ) www.reuters.com time to read: +2 min

Israel's annual inflation rate held steady at 5% in April versus expectations it would ease to 4.7%, and stayed well above an official annual target of 1-3%. Shal believes the cycle will end next week and expects rates to stay on hold for the rest of the year, before the Bank starts cutting them in early 2024. When it began hiking rates in April of 2022, the Bank of Israel had initially hoped its front-loading stance would be able to cap its key rate at around 3%. The inflation rate has stayed at at least 5% since last October and peaked at 5.4% in January. Bank Leumi Chief Economist Gil Bufman noted "the drop in inflation in Israel since its peak is low compared to the other countries".

☆ Israel cities end strike, turn to courts to block government's tax plan
▼ + stars: | 2023-05-18 | by ( Steven Scheer | ) www.reuters.com time to read: +2 min

JERUSALEM, May 18 (Reuters) - Israel's municipalities on Thursday ended a three-day strike and said they would instead turn to the courts to try to block a government plan to reallocate their tax income. Many of the biggest and wealthiest cities in Israel went on strike on Monday, shutting schools for a day and suspending services such as trash collection, over the Finance Ministry's plan. The Federation of Local Authorities said it would now go to court to block the creation of a nationwide property fund. "Local governments ... demand the state present a real plan to solve the housing crisis to bring down housing prices" with incentives to expand housing starts. Finance Minister Bezalel Smotrich said on Monday that he would not give in and that the property tax fund would be passed.

☆ Israel's Bezeq Telecom sees benefits from AI as posts flat Q1 profit
▼ + stars: | 2023-05-17 | by ( Steven Scheer | ) www.reuters.com time to read: +2 min

JERUSALEM, May 17 (Reuters) - Bezeq Israel Telecom (BEZQ.TA) reported flat quarterly profit on Wednesday, and said it expects to reap benefits from an exponential expansion of data created by artificial intelligence (AI) platforms through more lucrative fibre optics growth. Bezeq is working with Nokia to provide broadband speeds of up to 25 gigabits per second (Gbps) and said it plans to offer 10 Gbps in 2024, reaching 25 Gbps by 2027. It currently offers a maximum of 2.5 Gbps. Fischbein also said that he remained comfortable with Bezeq's forecast of 1.2 billion shekels of net profit in 2023. Shares of Bezeq were up 0.3% to 5 shekels in afternoon Tel Aviv trading, but are nearly 18% lower so far in 2023.

☆ Website creator Wix.com Q1 profit beats estimates, raises 2023 outlook
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +1 min

JERUSALEM, May 17 (Reuters) - Wix.com (WIX.O), which helps small businesses build and operate websites, on Wednesday said it swung to a net profit in the first quarter, boosted by growth in subscription revenue. The Israeli company said it had earned 91 cents per share excluding one-time items, compared with a loss of 72 cents per share a year earlier. Wix was forecast to earn 14 cents excluding one-time items, on revenue of $369 million, according to Refinitiv I/B/E/S data. It projects second-quarter revenue of $380 million to $385 million for annual growth of as much as 12%. Citing an "outperformance in Q1," Wix raised its full year 2023 revenue estimate to $1.522 billion to $1.543 billion - growth of 10-11% - from $1.51 billion to $1.535 billion.

An official in Netanyahu's office played down concerns, saying: "The prime minister along with the finance minister intend to pass a responsible budget in the coming weeks that will serve all Israelis. "The finance clerks don't understand Haredim," ultra-Orthodox lawmaker Yizhak Pindrus told Kan radio. Finance Minister Bezalel Smotrich said the funds would fix years of injustice toward the Haredim, whose children often are packed into derelict classrooms. Government figures already forecast Israel's economic growth will ease in 2023 from 6.5% in 2022 to about 2.7% and down from the 3% forecast in January. "Netanyahu has sold Israel's economy and our children's future in order to stay in power," said opposition leader Yair Lapid.

☆ Israel tech firms to continue job layoffs in 2023 -report
▼ + stars: | 2023-05-16 | by ( Steven Scheer | ) www.reuters.com time to read: +2 min

JERUSALEM, May 16 (Reuters) - Israeli high-tech firms have largely halted job hiring and many are expected to continue layoffs this year, a report on the country's tech sector showed on Tuesday. Israel's tech sector is a key growth driver, accounting for 15% of economic output, 10% of jobs, more than 50% of exports and 25% of tax income. On the heels of slower growth, tech firms raised $15 billion last year, down from a record $27 billion in 2021. In 2022, the number of employees in the high-tech sector increased by just 7.4%, versus 12% in 2021, the SNPI report said. Along with layoffs, one-third of companies do not plan salary raises in 2023, according to the report.

The strike, bringing school closures and a halt to garbage collection for millions of Israelis, also complicates a bid to pass a 2023-2024 state budget. The dispute is over a proposed fund that would dip into commercial property taxes collected by municipalities. More than 70 cities, including commercial hubs Tel Aviv and Haifa that will be paying more heavily into the property tax fund, joined the strike. Finance Minister Bezalel Smotrich said he would not give in and that the property tax fund would be passed as part of legislation for the 2023-2024 budget. Parliament has already given its initial approval for the 2023-2024 budget but it still needs to pass two more votes.

☆ Airwallex expands to Israel, seeks cyber security acquisitions
▼ + stars: | 2023-05-09 | by ( ) www.reuters.com time to read: +1 min

Founded in Australia, the financial technology company said its Israeli operations, which will begin on Thursday, would be a first step towards expanding across Europe, the Middle East and Africa in 2023. Or Liban, who will head the company's Israel operations, said the country's high-tech ecosystem, in which startups look to be global from the outset, was a main factor in expanding to Tel Aviv. "There's quite a lot of startups that might be relevant for our mergers and acquisition strategy, namely around cyber security, fraud detection, threat prevention. He noted that while there were no deals currently in the works, there were many opportunities for the company. Reporting by Steven Scheer; Editing by Bernadette BaumOur Standards: The Thomson Reuters Trust Principles.

☆ Israel hands lawmaker held in gun-running case over to Jordan
▼ + stars: | 2023-05-07 | by ( ) www.reuters.com time to read: +1 min

JERUSALEM, May 7 (Reuters) - Israel on Sunday handed over to Jordan a member of the Jordanian parliament who had been held on suspicion of trying to smuggle weapons into the occupied West Bank. A Jordanian security source said the case will be brought to trial. Its investigation, Shin Bet said, determined that Adwan was smuggling for money and "indeed received large sums of money". Shin Bet said a number of suspects in Jordan have also been arrested by Jordanian authorities over their alleged involvement. Israel enjoys close security ties with Jordan, the Arab neighbour with which it shares its longest stretch of border, but political relations have soured in recent years.

☆ Israel's judicial proposals prompt startups to relocate -govt agency
▼ + stars: | 2023-05-01 | by ( Steven Scheer | ) www.reuters.com time to read: +2 min

JERUSALEM, May 1 (Reuters) - The government's plan to overhaul the judicial system is harming investor confidence and pushing high-tech firms to relocate abroad, Israel's state-backed agency that supports high-tech companies said on Monday. Israel's high-tech sector employs 10% of the country's workforce accounting for around 15% of economic output, more than half of exports and a quarter of tax income. While the Nasdaq is up 17% this year, Israel's tech index is down 4%. It added that high-tech fundraising in the first quarter was just $1.7 billion, the lowest quarterly figure since 2019. The authority recommended a number of steps such as easing regulations, incentives to encourage investment and incentives for startups to register intellectual property in Israel.

☆ Israeli cyber security firm Check Point Software Q1 profit tops estimates
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: 1 min

JERUSALEM, May 1 (Reuters) - Check Point Software Technologies (CHKP.O) reported on Monday higher than expected profit for the first quarter of 2023, boosted by growth in its consolidated cyber security platform that prevents attacks across networks, mobile and the cloud. The Israeli-based company said it earned $1.80 per diluted share excluding one-off items in the January-March period, up 15% from $1.57 a year earlier. It was forecast to earn $1.74 a share on revenue of $569 million, according to I/B/E/S data from Refinitiv. Check Point said it bought back 2.6 million shares in the quarter, worth $325 million, as part of its ongoing $2 billion share repurchase programme. Reporting by Steven Scheer, Editing by Ari RabinovitchOur Standards: The Thomson Reuters Trust Principles.

☆ Tel Aviv Stock Exchange picks economist Kandel as new chair
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: 1 min

JERUSALEM, May 1 (Reuters) - The Tel Aviv Stock Exchange has appointed veteran Israeli economist and former advisor to the prime minister, Eugene Kandel, as its new chairperson, the bourse said on Monday in a regulatory filing. The appointment still requires shareholder approval. Kandel previously served as chair of Israel's National Economic Council and as an economic adviser to Prime Minister Benjamin Netanyahu, as well as CEO of Start-Up Nation Central a group connecting international business and government leaders with Israeli technologies. Reporting by Ari Rabinovitch Editing by Steven ScheerOur Standards: The Thomson Reuters Trust Principles.

☆ Israel in advanced talks with Germany to sell Arrow-3 missile defense
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +1 min

JERUSALEM, April 20 (Reuters) - Israel is in advanced negotiations with Germany to sell its Arrow-3 missile defense system, Israel's Defense Ministry said on Thursday. It is the top layer of Israel's missile defense array, which extends from Iron Dome that intercepts short-range rockets to Arrow-3's long-range missiles that destroy any non-conventional warheads at a safe altitude. Talks with the German defense ministry have been accelerated and the aim is to export the system in the near future, said Israel's Defense Ministry. The project has U.S. backing so the sale would require approval from Washington, the ministry said. State-owned Israel Aerospace Industries (ISRAI.UL) is the project's main contractor and Boeing (BA.N) is involved in producing the interceptors.

☆ Moody's Israel rating outlook cut "not big drama," finance minister says
▼ + stars: | 2023-04-16 | by ( Steven Scheer | ) www.reuters.com time to read: +2 min

JERUSALEM, April 16 (Reuters) - Israeli Finance Minister Bezalel Smotrich on Sunday said Moody's decision to cut the outlook for Israel's sovereign credit rating was "not a big drama" and that the government's plan to overhaul the judiciary would help the economy. Moody's Investors Service on Friday lowered Israel's outlook to stable from positive, saying the planned reforms could weaken Israel's institutions. Israel's sovereign credit rating was affirmed at "A1". Smotrich told a session of parliament's finance committee during a debate on the 2023-24 state budget that Israel's credit outlook was lowered in 2020, but raised in 2022. Israel's economy grew 6.5% in 2022 but the Bank of Israel foresees 2.5% growth this year.

☆ Moody's outlook downgrade fuels split reaction in Israel
▼ + stars: | 2023-04-16 | by ( Steven Scheer | ) www.reuters.com time to read: +4 min

Moody's Investors Service on Friday lowered Israel's outlook to stable from positive while affirming its sovereign credit rating of "A1". The legislative push has sparked weeks of intensifying mass protests and Moody's said it reflected weaker institutions. This would "stop the deterioration of the Israeli economy," it said. Israel's economy grew 6.5% in 2022 but the Bank of Israel foresees 2.5% growth this year. On the heels of Moody's action, Israeli government bond prices were down as much as 1.1%, while Tel Aviv share indexes were down 0.2%.

☆ Analysis: Israel's tech sector reels from SVB collapse, proposed judicial reform
▼ + stars: | 2023-04-03 | by ( Steven Scheer | ) www.reuters.com time to read: +7 min

In an industry of around 400,000 there are currently around 6,000 vacant tech jobs, according to government data. More than half of the country's startups held an account with SVB, companies and venture capital investors said, in some cases their only U.S. banking facility although the amounts involved are not fully known. Tech companies and investors alike said SVB was a rarity in the banking industry, familiar with Israel's tech ecosystem and offering loan terms unmatched by other banks. Citing the judicial reforms, Adam Fisher, a partner at investment firm Bessemer Venture Partners, said fewer American banks may be willing to lend to Israeli companies, which means less competition and more onerous terms. Israel's tech companies are therefore likely to flock to register as U.S. companies, while keeping R&D back home, said Yaron Samid, managing partner of the TechAviv Founder Partners fund.

☆ Israeli PM agrees to delay judicial overhaul until next parliament session
▼ + stars: | 2023-03-27 | by ( ) www.reuters.com time to read: 1 min

JERUSALEM, March 27 (Reuters) - Israeli Prime Minister Benjamin Netanyahu will delay the process for discussions on the controversial planned judicial overhaul to next month, a statement from the far-right and coalition member party Jewish Power said on Monday. The statement said the legislation would be pushed to the next session of Israeli parliament in order to "pass the reform through dialogue," the statement said. Parliament will go on recess next week for the Passover holiday. Reporting by Emily Rose Editing by Steven ScheerOur Standards: The Thomson Reuters Trust Principles.

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