Synopsis
A recent survey by the Israel Innovation Authority highlights that 80% of Israeli hi-tech companies are in urgent need of capital within six months due to the ongoing conflict. The survey reveals significant operational challenges but also cautious optimism for future growth.Key Takeaways
- 80% of Israeli hi-tech firms need capital.
- 43% identify fundraising as a major challenge.
- 50% report imminent financial depletion.
- 70% anticipate sales growth despite challenges.
- 38% remain optimistic about the future.
Tel Aviv, Jan 19 (NationPress) A recent survey conducted by the Israel Innovation Authority disclosed that 80 percent of hi-tech enterprises in Israel are seeking to secure additional funding within the next six months.
This survey assessed the condition of hi-tech firms in Israel amidst the ongoing conflict, focusing on their resilience and adaptation to wartime obstacles.
Nearly 50 percent of the participating firms indicated that their financial resources would be depleted within six months if new funding is not obtained, with 43 percent citing fundraising as their primary hurdle.
Additionally, close to 50 percent of the companies reported enacting efficiency measures, which included cost-cutting and layoffs, to adjust to operational setbacks caused by extended military reserve duty, flight cancellations, and the caution exhibited by global investors.
Approximately 30 percent of firms stated that prolonged military reserve duty, especially among essential staff, has resulted in operational delays and disruptions, while 74 percent noted that flight cancellations have impeded their ability to conduct international business.
The survey indicated that 62 percent of hi-tech companies largely or very largely agree that the current security climate has prevented them from achieving their development and sales goals.
Despite facing capital deficits, workforce interruptions, and operational challenges, 70 percent of companies predict growth in sales, with nearly half anticipating an increase in employment both in Israel and globally. This reflects a cautious optimism regarding the industry's capacity to adapt under pressure.
Overall, 38 percent of respondents express optimism about the future success of Israeli hi-tech in the upcoming year.
