(Bloomberg) — The big money has arrived for what could be the next generation of Israel’s vaunted technology sector.
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International investors helped set off a bonanza last year, when Israeli startups raised about $26 billion — more than double the previous high in 2020 and nearly a quarter as much as the funding that poured into Europe as a whole.
Upending the pecking order in local venture capital, U.S. funds made 266 early-stage investments, an increase of almost a fifth from the previous year, according to data from Start-Up Nation Central, a non-profit organization that tracks the industry in Israel.
The exuberance comes with more risk. Tiger Global Management and Insight Partners, which have already bankrolled Israel’s largest privately-held firms, are increasingly betting on younger and less proven companies as a way to corner the market of upcoming winners and potentially reap greater returns. SoftBank Group Corp. and Blackstone Inc. are meanwhile opening local branches to better sniff out opportunities.
Foreign investors tend to win deals by…
