Most Israeli Hi-Tech Companies See Capital Shortage Due To War: Survey

Tel Aviv:  A survey by the Israel Innovation Authority revealed on Sunday that 80 per cent of hi-tech companies in Israel need to raise more capital within the next six months.

The survey examined the state of hi-tech companies in Israel during the conflict, including the sector’s resilience and adaptation amid wartime challenges.

In the survey, nearly half of the companies reported their funds would run out within six months without new funding, and 43 per cent identified fundraising as their primary challenge.

In addition, nearly half of the companies reported implementing efficiency measures, including cost reductions and layoffs, to adapt to operational disruptions caused by prolonged military reserve duty, flight cancellations, and global investors’ caution.

Around 30 per cent of companies reported that prolonged military reserve duty, particularly among key personnel, has caused operational delays and disruptions, and 74 per cent reported that flight cancellations hindered their ability to conduct business abroad.

According to the survey, 62 per cent of hi-tech companies largely or very largely agree that the security situation has led to failure to meet their development and sales targets.

On the other hand, despite capital shortages, workforce disruptions, and operational strains, 70 per cent of companies anticipate sales growth, and nearly half foresee employment growth in Israel and abroad. This signals cautious optimism and the industry’s ability to adapt under pressure.

In general, 38 per cent of respondents are optimistic about the success of Israeli hi-tech in the coming year.

(IANS)