Israel Fintech Sector Witnesses Strong Funding Figures in 2021
- Fintech startups received 17% of Israeli tech investments.
- Fintech companies accounted for 23% of all Israeli IPOs and SPAC mergers in 2020 and 2021.
A report published by Israeli media unveiled that the local fintech sector saw a significant rise in 2021. The Times of Israel noted that investments in startups and companies of the industry hit $4.5 billion over the year, citing a report from Viola Group, an Israeli investment firm.
The surge implied a 136% increase from 2020, where fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term startups and firms experienced $1.9 billion in funding.
Among the companies that raised significant funding in 2021 were Melio, which developed a payment platform for small and medium-sized businesses, with a Series D round of $250 million, as well as Tipalti, which developed a payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and compliance software platform with a $270 million investment and HoneyBook, which raised $250 million in a Series E round in late 2021 as well as $155 million earlier.
Fintech funding accounted for 17% of the total investments in Israeli tech companies, which is the highest figure in six years, with single investments over $100 million, driving ‘the lion’s share of growth in the fintech space’, the authors write. Moreover, over $3 billion of the total funding was raised in mega rounds in 2021.
Investments by Segments
Fintech companies accounted for 23% of all IPOs and SPAC mergers for Israeli companies in 2020 and 2021 combined. Among them are Payoneer, a payment processing company that went public on the New York Stock Exchange last summer, Riskified, an e-commerce fraud prevention company that went public on the New York Stock Exchange in July, and insurtech companies, Hippo and Lemonade.
The fastest-growing fintech segments, according to the report, were insurtech, payments, trading and investing, as well as lending and financing.
Despite this, cryptocurrency and blockchain-based security technologies were the segments with the highest traction. However, these emerging fields inspire reluctance in traditional investors due to the lack of transparency and regulation.
A report published by Israeli media unveiled that the local fintech sector saw a significant rise in 2021. The Times of Israel noted that investments in startups and companies of the industry hit $4.5 billion over the year, citing a report from Viola Group, an Israeli investment firm.
The surge implied a 136% increase from 2020, where fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term startups and firms experienced $1.9 billion in funding.
Among the companies that raised significant funding in 2021 were Melio, which developed a payment platform for small and medium-sized businesses, with a Series D round of $250 million, as well as Tipalti, which developed a payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and compliance software platform with a $270 million investment and HoneyBook, which raised $250 million in a Series E round in late 2021 as well as $155 million earlier.
Fintech funding accounted for 17% of the total investments in Israeli tech companies, which is the highest figure in six years, with single investments over $100 million, driving ‘the lion’s share of growth in the fintech space’, the authors write. Moreover, over $3 billion of the total funding was raised in mega rounds in 2021.
Investments by Segments
Fintech companies accounted for 23% of all IPOs and SPAC mergers for Israeli companies in 2020 and 2021 combined. Among them are Payoneer, a payment processing company that went public on the New York Stock Exchange last summer, Riskified, an e-commerce fraud prevention company that went public on the New York Stock Exchange in July, and insurtech companies, Hippo and Lemonade.
The fastest-growing fintech segments, according to the report, were insurtech, payments, trading and investing, as well as lending and financing.
Despite this, cryptocurrency and blockchain-based security technologies were the segments with the highest traction. However, these emerging fields inspire reluctance in traditional investors due to the lack of transparency and regulation.