2024/H1 JapaneseInvestments In Israel
A Report by Harel-Hertz Investment House

T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved11

Key Highlights of 2024/H1$317.4M# 33$263M in follow rounds

Japanese Investment
in millions

Number of investment
rounds Japanese
Investor haveparticipated in

The volume invested in follow-up
rounds was 4.8 times greater thanthe volume invested in initialrounds

•A 31% reduction
compared to 2023/H1•A WORLD OF TRUSTSame level as 2023/H1

T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved2

Executive Summary• Japanese Investments in Israel proved solid presence, in Israeli High-Tech Eco-System. In spite ofdramatic/worsening geo – political environment and sharp devaluation of the Japanese Yen
against the USD, (15% decline in 2024), Japanese investors kept their interest in Israeli
technologies.
• While the number of investments remained stable , the amount invested fell by 33%, keeping
pace with global trends.

• Half of Japanese investments were of Strategic nature while the rest involved financial VC’s
portfolio activities. Six new corporate investors made their initial investments here.

A WORLD OF TRUST

T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved3

Executive Summary• In the first half of 2024, Japanese investments totalled $317.4 million across 33 transactions,marking a 31% decrease in value however maintain the same level in terms of the number ofinvestments as in 2023/H1.
• Over the past four years (from 2021/H1 to 2024/H1), these investments have shown a negative
compound annual growth rate (CAGR) of 13%.
• Notably, there is a prevailing trend favouring follow-up investments over initial investments involume ($M), with follow-up transactions constituting 83% of the total $317.4 million Japanese
investments in 2024/H1. A significant portion of these follow-up funds—48%—was allocated toearly-stage investments (Seed and A-Round), marking a 18% increase compared to 2023/H1,
where later-stage investments dominated (B-Round and later).
A WORLD OF TRUST

T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved4

Executive Summary• Japanese investments represented 9% of all foreign investment volume ($M) in 2024/H1,
reflecting a 7% decline from 2023/H1, while the number of Japanese investments (#) has
remained at the same level as 2023/H1.
• The IT, Cyber Security, and Fintech sectors emerged as the preferred areas for Japanese
investment in 2024/H1, collectively accounting for 58% of all investments. This marks a slight shiftfrom 2023/H1, when Fund & VC, Cyber Security, Fintech, and Automotive were the leading

sectors of interest.

A WORLD OF TRUST

T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved5

Japanese Investments And Acquisitions Of Israeli Companies
100

2,956

3,000

90

93

2,500

80

73

2,160

71
67
2,000

62
60

1,537
50

1,500

44
1,168

40

1,151

38

35

1558

756
30

23

22

1,000

57

10
139

1,096

221
41

101

33

26

20

10662

635

426

4

13

86

1

38910

106

422

1314269317
500

62--

# of investments

Volume (M$)

T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved

6VOLUME ($M)

NUMBER OF INVESTMENTS (#)

70

2019/H1-2024/H1 Japanese investments in Israel
45

4135

1000

38987

33

33721.3

800

353025VOLUME

40586

25600
20459

472.3

400

317

# OF INVESTMENTS

1200

1510200
500

2019/H1

2020/H12021/H1# of Japanese investmentsYear
2019/H1
2020/H12021/H12022/H12023/H12024/H12022/H12023/H12024/H1

Volume of Japanese Investments investments

Volume of Japanese Investments# of Japanese investments
721472987
586459317

T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved3525413833337

Japanese Investment: First vs. Follow comparison# OF FIRST VS. FOLLOW JAPANESEINVESTMENTSFirst

VOLUME OF FIRST VS. FOLLOWJAPANESE INVESTMENTS

Follow

First

19

Follow

394
17263

16142023/H12024/H1# of First vs. Follow Japanese Investments
YearFirst

4054

2023/H12024/H1Volume of First vs. Follow Japanese Investments
YearFirstFollow

Follow

2023/H114192023/H140394

2024/H116172024/H154263

T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved82019-2024 HALF YEARLY VOLUME OF INVESTMENT IN ISRAELI HIGH -TECH (M$)

8,114

3,332

7,800

3,345

3,171

2,875

2,792

2,318
721

1,484

1,128

2019/H1

1,022

987

472
2020/H1
Volume of Foreign investment

2021/H1858

586

459

2022/H1

2023/H1

Volume of Japanese investments*317
2024/H1

Volume of Israeli investment

T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Data collected from Preliminary Data from IVC and Leumitech Israeli Tech Review Q2/2024
Reserved92019-2024 HALF YEARLY % OF JAPANESE INVESTMENTS OUT OF FOREIGNINVESTMENTS (M$)
12%
987

8%

VOLUME (M$)

586

14%
31%

8,114

472.3

7,800

9%
317

459

721.3
3,332

2,792

2,318

2019/H116%

2020/H1

2021/H1

Volume of Total Foreign investment

2022/H1
Volume of Japanese investments

T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Data collected from Preliminary Data from IVC and Leumitech Israeli Tech Review Q2/2024
Reserved

2023/H1

3,345

2024/H1*Volume of Japanese
Investments as a % of
the total volume ofForeign Investments inIsraeli High-tech10

2019-2024 HALF YEARLY COMPARISON OF # OF JAPANESE INVESTMENTS, TOTALFOREIGN INVESTMENTS, ISRAELI INVESTMENTS

254138

1,075

1,054

333335534

589475525

2019/H12020/H1# of Israeli investments

Year2019/H1
2020/H1
2021/H1
2022/H1
2023/H1
2024/H1

691

700
850

771

2021/H12022/H1# of Total Foreign investments# of Israeli investments
475
525
771
850
433
552

433

552

2023/H1

2024/H1# of Japanese investments*# of Total Foreign investments
534
700
1,075
1,054
589
691

T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Data collected from Preliminary Data from IVC and Leumitech Israeli Tech Review Q2/2024
Reserved# of Japanese investments*352541383333* The Japanese investments
are included in the Foreign
Investments Volume112019-2024 HALF YEARLY % OF JAPANESE INVESTMENTS OUT OF FOREIGNINVESTMENTS
4%
414%

384%

5%

256%

7%

3435

1,075

1,054

700

691
589

534

2019/H133

2020/H1

2021/H1# of Foreign investments

Data collected from Preliminary Data from IVC and Leumitech Israeli Tech Review Q2/2024

2022/H1

2023/H1# of Japanese investments*T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved

2024/H1*Number of Japanese
Investments as a % of
the total number of
Foreign Investments inIsraeli High-tech

12

Investment by VCs vs. Corporate Investment
Investor Type

2023/H12024/H1

VC (Financial Investments)

16

22

Corporate (StrategicInvestments)

17

11*

* 6 out of the 11 Corporate investors were new Japanese investors.

T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved132023/H1 - 2024/H1 FUNDING STAGE COMPARISON (IN%)
SeedABCC+IPO

Fund

Exit

Funding
stage
3%
18%

2024H1Seed

23A

813B

93C

5515%

C+

259%

IPO

01

Fund

63

Exit

10Total

33

339%
3%
15%

6%
15%

2023/H127%
39%

24%
6%

9%

2023/H12024H1
T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved

14

Japanese Investments by sectors 2024/H1 vs. 2023/H1 comparison
2023/H1Foodtech, 0%Cleantech, 3%
Automotive &Mobility,Transportation,
15%

2024/H1Semiconductor,3%
IT, 3%

Cleantech, 10%

Foodtech, 3%Life science,6%Fund & VC,18%

Fintech &Crypto &Blockchain,12%Fintech &Crypto &Blockchain,
13%

IT, 26%

Agritech, 3%Life science, 6%

Agritech, 9%Cyber &Quantum, 12%
Industry 4.0,9%

Other, 13%

Other, 9%Fund & VC, 6%

Cyber &Quantum, 19%
T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved15

Key Sectors Investment in 2024/H1 out of Total Japanese Investment
sector
ITSemiconductor
Life science
Fund & VC
Cyber & Quantum
MediaIndustry 4.0
AgritechFintech & Crypto & Blockchain
EnergyAutomotive & Mobility, Transportation
Cleantech
Foodtech

2001-2015
46%
18%
12%
4%
3%
3%
1%
1%
1%
1%

2016-2019
13%
2%
20%
6%
14%
4%
3%
1%
7%
2%

2020-2023
17%
2%
15%
5%
15%
3%
3%
6%
5%
3%

2024/H1
26%
6%
6%
19%
3%
13%
--

10%
1%

10%
1%
1%

10%
3%

T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved16Japanese Investment in 2024/H1
Japanese Companies
MUFG
KDDI
Sony Innovation
variousvarious
Magenta VC
InVentures
InVentures
Sanwa pharma
Toshiba DigitalMGI
Sumitomo life
In Ventures
Financial instOisix
GITV
Chartered Group VC

Israeli Companies
Liquidity Debt Fund
Double Octopus
Double Octopus
RedHatVertex6
SensosSensosBria.AI
Neurolief
Claroty
Claroty
Empathy
Wekudo Tech
Bridgewater
Forsea Foods
Found Energy Co.
Xtend Reality

SectorFintechCyber
Cyber
FundFundITIT
IT
Life Science
Cyber
Cyber
insurtech
ITFintech
Foodtech
Cleantech
HLSfunding stage
FundCC
FundfundAAA
A
C+C+CA
B
A
A
B

Follow up
investments
Follow
Follow
FollowFirst
FollowFirst
First
FollowFirst
First
FollowFirstFirstFirstFirst
First
Follow
17

Japanese Investment in 2024/H1 (continue)
Japanese Companies

Israeli Companies

Sectorfunding stage

Follow up
investments

DNX

Knostic

IT

Seed

First

Softbank vision

KariusLife Sciencec

Follow

Softbank vision

Wiz

Cyber

C+

Follow

Hitachi VC

WEKA

IT

C+

Follow

Softbank

FireflyIT

C+FirstChartered Group VC

momentick

Cleantech

Seed

Follow

Amuse

EggXYtAgritechA

First

tb Innovations

Gauzy

Cleantech

IPO

First

Chartered Group VC

Cognifiber

AI

B

Follow

Laser Digital

sandblockcrypto/ blockchain

AFirstAristagora

NimbleFametechA

Follow

Aristagora

Chainlane

E-Commerce

C

Follow

Terilogy

BBT.live

IT

Seed

First

Magenta VC

Undisclosed

FintechA

Follow

Magenta VC

Undisclosed

FintechA

Follow

Magenta VC

Undisclosed

Cyber

A

Follow
18

Appendix:
Date
Jan-24Jan-24Jan-24Feb-24Feb-24Feb-24Mar-23Mar-24Mar-24Mar-24Mar-24Mar-24Mar-24Apr-24Apr-24Apr-24May-24May-24May-24May-24May-24May-24May-24Jun-24Jun-24Jun-24
Jul-24
Jul-24
Jul-24

IL CompanyC2i Genomics
Automize
HeliosWIB Security
HiredScore
Codefresh
Flow Security
Resident
GEM Sec
CTCI
AVALOR
Oxide
Speedbentitlesilk
Run:AI
Deci
BioCatch
Belkin Vision
Noname SEC
GETTPriority
Get SAT
WalkMeEurekaQwak
Innovalve
Sealight
Plank

Source: https://www.calcalist.co.il/home/0,7340,L-8,00.html

2024/H1 M&A of Israeli companies

Buyer/Acquisitor
Veracite
Delinea
SNYK
5F
WORKDAY
Octopus
CrowdStrike
Ashley Home
WIZ
Armis
Zscaler
GitLabRedis
BeyondTrust
Armis
NVIDIANVIDIA
Premira
Alcon
AKMAI
Pango
Blackstone
Thales
SAPTenable
Jfrog
Edwards
Tricentis
Applied systems

Region of Buyer
USAUSAIL
USA
USA
AUS
USA
USAIL
IL
USA
USAIL
usa
ILUSA
USA
usa
USA-SWISS
USA
il
USA
FranceGermany
USAIL
USA
USA
USA

T:+972-9-955-0560, info@harel-hertz.com ; www.harel-hertz.com © 2024 Harel - Hertz
Investment House All Rights ReservedSector
Life science
Cyber
Cyber
Cyber
AIIT
Cyber
Retail
Cyber
Cyber
Cyber
Cyber
IT (Data)
Cyber
Cyber
Semiconductor (AI)
Semiconductor (AI)SecurityLife Science
Cyber
Mobility
IT
Space-tech
IT
Cyber
Machine learningLife ScienceIT
InsurtechAmount in $M
9550303530045300
1000
350
20350
35100
110150700300
1200350450
175450undisclosed amount
1500
50230
350
15050019

Methodology
and editors’remarks• Data is collected by from public media and private sources.
• Figures published in this review are based on accumulated datafrom numerous sources.
• We are aware there are investments and partnerships which
are non-disclosed for several reasons, we did not publish
unauthorized cases.
• Non Equity transfers ( Advance payments, NRE’s, options andnon refundable loans were excluded from our statistics).
• General FDI figures are based on data gathered from IVCLeumiTech, Startup Nation Central, Calcalist and IIA.

Remarks:
Elchanan Harel
Helena Goldman• Stage of Finance was gathered from VC’s and Companies
announcements.
• Investments in companies in the USA, with no links to Israel (but the origin of the founders) were not included in this survey.
• Data of investments in previous years may be edited according
to new findings and publications that were revealed in
2024/H1.

A WORLD OF TRUST

T:+972-9-955-0560, info@harel-hertz.com ; www.harel-hertz.com ©
2024 Harel - Hertz Investment House All Rights Reserved20

About Harel-HertzInvestments
House

Founded in 1994, Harel-Hertz Investment House Ltd (HIH) is Strategy andBusiness Development Consulting and Investment Banking Boutique,promoting business between Japan, Israel, and the world.

At HIH we provide tailor-made services at top professional standards, withpersonalized attention to every customer, to fit the specific requirementsof each business opportunity.

HIH is intimately connected with leading technology companies,entrepreneurs, VCs and opinion leaders in Israel and Japan, and operates
out of its offices in Herzliya and Tokyo.

A WORLD OF TRUST​HIH was founded on dedication, experience, professionalism,responsibility, dependability and personal relations with its clients
T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved21

THANK YOU!

Feel free to reach out to us
if you have any questions.

Phone Number+972-9-955-0560

Email Address
info@harel-hertz.com

Websitewww.harel-hertz.com

LinkedIn
https://www.linkedin.com/company/harel-hertz-investment-house/

22Copyright © Disclaimer
All rights reserved. No part of this publication may be reproduced, distributed, ortransmitted in any form or by any means, including photocopying, printed circulation, orother electronic or mechanical methods, without the prior written permission of thepublisher, except in the case of brief quotations embodied in critical reviews and certain
other noncommercial uses permitted by copyright law. For permission requests, write to
the publisher, addressed “Attention: Permissions Coordinator,” at the address below:
info@harel-hertz.com*We do not own any of the pictures used on this platform unless explicitly stated otherwise. Allimages have been sourced from public domains and are believed to be free for use. We do not claim
any ownership of these images except for our company logo, which is the property of our company.

Special Thanks to IVC and LeumiTech for providing the rights to use data forforeign Investments in Israel

T:+972-9-955-0560, info@harel-hertz.com ; www.harelhertz.com © 2024 Harel - Hertz Investment House All Rights
Reserved23