8 Hamada, Herzliya Pituach 46140 Israel T:+972-9-955-0560
info@harel-hertz.com ; www.harel-hertz.com© 2020 - 2021 Harel - Hertz Investment House All Rights ReservedAbout Harel-Hertz Investments House
Founded in 1994, Harel-Hertz Investment House Ltd (HIH) is Strategy and Business
Development Consulting and Investment Banking Boutique, promoting businessbetween 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 requirements of eachbusiness 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 Herzliyaand Tokyo.
​HIH was founded on dedication, experience, professionalism, responsibility,dependability and personal relations with its clients

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Japanese investments in Israel
HIH is happy to continue with the tradition of presenting the yearly review of Japaneseinvestments in Israel
Last year was overshadowed by the burst of the Covid-19 ,Corona pandemic, which threatened
to depress Economies, increase isolation and minimize international engagements.
We are therefore delighted to emphasize further growth in Japanese investments and expansionof economic involvement.
With investments of $1.1BN Japan has become an important player in the Israeli High-tech,taking a share of 11.1% of total foreign investments in this industry.
While volume of investments has grown ,the number of investment has declined to 51 from 68 in2019.
The growth of Japanese interest in Israeli technology corresponds with the impact of the USChina conflict on the activities of the Israeli start-ups

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Japanese investments in Israel (cont..)• The major changes in Japanese activities :• Continuous growth in Japanese investments since 2016 culminating in 2020 to $1.1BN• Japan’s role in FDI has grown dramatically from insignificant 1.8% in 2016 to impressive 11.1% thisyear, 2020

• 51 investments in 2020 compared to 68 in 2019 (decrease by 25%)
• 22 investments were made by first time, new investors• Growth of involvement of Japanese VCs located in Israel: overall 15 Japanese VCs operate fromlocal offices. This in parallel to the important increase of Japanese names with Israel fixed
presence:, which has grown from modest 15 in 2015 to close to 90 offices in 2020.

• Impressive new involvement of Japanese Institutional Investors ( banks and Insurance companies)
in the Israeli scene. Three of the five most active in 2020 were institutional organizations.

• Shift from small seed investments to bigger A+ and B rounds.
• Japanese VCs and CVCs still do not take lead investors position ,but prefer to join Israeli or globalVCs.

• Japanese acquisitions are still lagging behind US leaders.
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Japanese Investments And Acquisitions Of Israeli Companies
80

2500

2153.5

7068
2000

60
1103.1
5150

1500

40

3631

1000

30

20914.9715.519131012795331986514500

7100
2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

# Of Investments

2012

2013

2014

Sum ($M)

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2015

2016

2017

2018

2019

2020

Annual # Of Foreign VS Japanese Investments In Israeli
HighTech
700

700
578

600
500

538

522

500

461

455

436

600

400

400

300

300

200200100
121002015

2016

6834
2017

5130
2018

# of Foreign investments*Source for Foreign Investments:IVC-Meitar Report

2019

2020

# of Japanese investments*Excluding Japanese Acquisition of Israeli
HighTech Companies 2015 - 2020
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HighTech
12000

12000
9934

10000

10000

8364

8000

8000
6353

6000
4534

4000

6000

4857

3775

4000

2000
086.752015

427.5832016

2017

2018

Sum of Foreign investments (M$)*Sourcefor Foreign Investments:IVC-Meitar Report1103.1 2000

914.9

645.5
2019

2020

Sum of Japanese investments (M$)*Excluding Japanese Acquisition of Israeli
HighTech Companies 2015 - 2020

8 Hamada, Herzliya Pituach 46140 Israel T:+972-9-955-0560
info@harel-hertz.com ; www.harel-hertz.com© 2020 - 2021 Harel - Hertz Investment House All Rights Reserved0Number and Sum of Japanese Investments out of total offoreign investments in Israeli HighTech in Percentage
20.0%
18.0%
16.0%
14.0%

13.0%
11.1%

12.0%
10.2%
10.0%

8.8%
10.9%

8.0%
8.8%
6.0%
2.3%
4.0%

2.0%
2.3%

0.0%
2015

7.4%

5.6%

2.6%
1.8%

2016

2017

2018

Volume Of Japanese Investments out of Total Foreign Investmetns
Amount Of Japanese Investments our of Total Foreign Investments

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2020

Top 10 Active Investors 2001 - 2020
1600

2514602214001200

1064.5

1000

15800
1020

191715121110600
7774005237.2

200133.525.50Toyota

9.5GITV

33MS&ADVentures

Sumitomo

160
69.9
Hitachi# Of Investments

66NTT

SoftbankSum(M$)

Mitsubishi
Corporation

Mitsui

SBI

Mitsubishi Includes Neurodeam
Acquisition for 1.1BN$

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Top 5 Active Investors in 2020
350

6318

300

5250

5444200

333150118.5

21005012927
70

Mitsubishi Corporation

Sumitomo

SBI# Of Investments

MS&AD Ventures

Sum(M$)

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Global Brains0

Japanese Investments in Israeli HighTech by Round

66
70

5460

51

93
550
31
40
30

11
8

20

710

10

22

16
19
14

11
7

3

30

2018

2019

SEEDA

B

2020

C+FUNDSEXITS

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Investments By Sectors 2001-2020

Media
AgriTech 3%
IT Semi 3%

Rest
11%

IT27%

4%
AI
4%
Medical5%Fintech
5%

cyber
10%
Automotives
5%

Biomed
7%VC
7%Pharma9%

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Investments By Sectors 2016-2020

blockchain
2%

Robotics
2%
Rest
12%

AgriTech
4%

IT13%
cyber
12%

MEDIA
4%

AI
6%

Pharma12%

VC8%Fintech
8%

Automotives
8%

Biomed9%8 Hamada, Herzliya Pituach 46140 Israel T:+972-9-955-0560
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Top Investments by Sector & Year Change

5%

70%

8%

5%
8%

6%

60%

7%

9%

9%

8%

10%

12%

50%
40%
30%
12%

20%

27%
13%

10%
0%

2001-2020

IT

cyber

2016-2020

PharmaVC

BiomedAutomotives

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Japanese Acquisitions of Israeli Companies
JapaneseCompany
Acquiring

Israeli
Company
Acquired

Acquired FromSector

Year

Amount ($M)

Nikken Shusha

NBT

COOR

Chemicals

1989

10

Yaskawa robotics

Eshed Robotecs

Robogrouprobotics

1997/2008

5.7

SBI Holdings

QUARK

oracle-nitto

pharma2008/2014

120

ADM/Kaga**

ExplayFounders

IT

2009

4

SUN Corporation*

Cellbrite

Founders

IT-Security

2017

17

Toshiba

OCZ

NasdaqIT201335

Rakuten

Wiber

Founders

IT/SNS2014

900

Sony pictures***

Dori MediaDMG

IT/Media2014

Dentsu Aegis

AbAgAdAbAFounders/VC

IT/Media

2015

76AsahiKasei-Zoll

Kyma MedicalFounders/VC

BioMed2015

35

SonyAltair Semi

Founders/VC

IT/Semi2016

230* sun corp' sold 25% of its holdings in cellbrite to IGP for $100M in 2019** Explay closed in 2011*** on June 2020 DMG executed a buy back of SPG 50% holdings in Dori Media
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info@harel-hertz.com ; www.harel-hertz.com© 2020 - 2021 Harel - Hertz Investment House All Rights Reservedn/aJapanese Acquisitions of Israeli Companies IIJapaneseCompanyAqcuiring

Israeli CompanyAcquired

Acquired FromSector

Year

Amount ($M)

Yokohama Rubber

Alliance Tires

KKR P/E

Autom/chemicals

2016

1200

Sony Pictures*Interlude/EKO

Founders/VC

IT/Media

2016

50

Orix**Ormat

Publicenergy

2017

626

Mitsubishi Tanabe

Neuroderm

Founders/PublicPharma

2017

1100

Canon

BriefcamFounders/VC

IT

2018

70

Rigaku corp

XwinSYS

EuroControl

SEMI

2019

20

AnGes Inc

Emendo
BioTherapeutics

Founders/VC

Pharma2020

250+50* Sony Pictures acquired 50% of Interlude/EKO** Orix Acquired 22% of Ormat

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Japanese VCs Present In Israel
ParentCompany\PartnershipJapanese
VC\CVCYear
Established
In Israel# Of
Investme
nts

Mitsui

MGI

2008

8

Autotalks, Cipia (eyesight), Kaltura, Silk, Valens, EarlySense,Mominis, Kaiima

TakedaTakedaVentures Inc

2014

5

Immpact-Bio, Futurx, Emendo-Bio, BiomX, Protekt

VertexCorundum

2015

5270Surgical, Cathworks, EternaBio, Theranica, Dario

Sony

Sony Innovation

2016

1Broadmann17.

SBI JI

201713

Adicet Bio, Ayala, BiomX, Biond Bio, BioSight, Chemomab, Eloxx,ImmunoBrain, Logic Bio, Orasis, cylus, D-Fend, Trigo

JOY

2017

8

EmberLabs, Empatic Technologies, Myndlyft, NYX Technologies,
Reflect innovations, Sanga, Vi Technologies, Zoog.AI

Sompo Insurance

Sompo

2017

7

Nexar, Guardian, Sensifree, Intuition Robotics, Panorays,Medigate, Binah.ai

MGI - Mitsui

Magenta2018

6

Autotalks, Valens, Workiz, Become, Hip, Brightway Vision

GiTV

2018

6

Kitov, Binah.ai, Adshir, Seebo, DLR, Feelit

VertexCorundum

Portfolio Companies

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Japanese VCs Present In Israel II
ParentCompany\PartnershipJapanese
VC\CVCYear
Established
In Israel# Of
Investments

Renault - Nissan Mitsubishi

Alliance Ventures

2018

3

Upstream, Maniv mobility, Otonomo

MaruhoMII Science VC

2018

4

Fillicle Pharma, TPCera, Seanergy, MyBiotics

NTT

NTT VENTURES

2019

7

WSCSports, Riskified, otonomo, Wiliot, Red Dot,SundaySky, VDOO

Marubeni

Marubeni

2019

2ePlane, D-ID

Sumitomo

IN Venturs

2019

2Anagog, H2Pro

Meitav - DashMUFG Innovation

2020

4

FUNDBOX , BlueVine, liquidity Capital, ChargeAfter

Mitsui – SumitomoInsurance

MS&AD vetures

5

VDOO, Blackswan, Next, Bambi Dynamic, Sproutt

Aristagora

2020

Portfolio Companies

N/A

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Methodology and editors’ remarks
1.Data is collected by from public media and private sources

2.Figures published in this review are based on accumulated data from numerous sources,3.We are aware there are investments and partnerships which are non-disclosed for several
reasons, we did not publish unauthorized cases
4.Non Equity transfers ( Advance payments, NRE’s, options and non refundable loans wereexcluded from our statistics
5.General FDI figures are based on data gathered from IVC
6.Acquisitions, were excluded from data presented in REVIEW, especially those which are
one-time event ( Mitsubishi Tanabe- NeurodremYokohamaTires- Alliance and Orix- Ormat)
7. Stage of Finance was gathered from VC’s and Companies announcements.

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info@harel-hertz.com ; www.harel-hertz.com© 2020 - 2021 Harel - Hertz Investment House All Rights ReservedGeneral information about the review editors
Ziv Tetruk

Elchanan Harel• Ziv is responsible for IT and Semiconductors
and Business Development activities at HIH.

• He Joined the team in April 2018
• Ziv served in the IDF elite technology unit
8200.

• Prior to joining HIH, Ziv worked at SanDisk• Ziv Holds a B.A. in Economics and AsianStudies from the Hebrew University.

• President and Founder of Harel-Hertz Investments
House• Elchanan Harel has been exploring Japan for over three
decades both as a banker as well as a businessman andas a public official.

• He is a former Chairman of the Israel-Japan Friendship
Society and Chamber of Commerce and is now its
Honorary President• graduated in from the Hebrew University of Jerusalem
and got his Masters degree from Tel Aviv University.

• Elchanan Harel was bestowed in 2005 with thehonorable decoration, 'The Order of The Rising Sun,
Gold Rays with Neck Ribbon' by the JapaneseGovernment

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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,or other electronic or mechanical methods, without the prior written
permission of the publisher, except in the case of brief quotations embodied in
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For permission requests, write to the publisher, addressed “Attention: Permissions
Coordinator,” at the address below:
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Special Thanks to IVC for providing the rights to use data for foreign Investments inIsrael

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