Israel’s State of Climate Tech 2022 - Update

Overall investments in early and growth stage startups in Israel in 2021 were 25.8 billion USD, 9 meaning that for every dollar invested in Israeli high tech, 10 cents went towards climate tech. This is lower than the global and EU 2021 ratio of 14% 10 and 13% 11 respectively. This ratio, however, increases to 15% in H1 2022. Whilst total hi-tech investments in Israel saw a downturn in this half, 12 climate tech investments remained steadfast, such that their relative fraction of total capital raised grew by 50%. An analysis of the investments over the period between 2018 and H1 2022 reveals that9 After the initial increase between 2018-2020, annual investments in Clean Energy Systems decreased greatly in 2021, but seem to have recovered again in 2022 (when considering H1 2022 to be indicative of the full year to come)P After the initial increase between 2018-2020, annual investments in Sustainable Mobility & Transport have remained a significant fraction of the overall climate tech investments, though decreasing somewhat year by year6 Annual investments in Alternative Proteins have significantly increased year by year since 20186 Annual Investments in Climate Smart Agriculture have increased since 2018, and display a remarkably steady investment amount since 2020. We note that the four main challenges together raised similar amounts in 2020 and 2021 ($1.2 billion) and that the increased investments in 2021 came from additional challenge areas; Clean Manufacturing, Transparent & Agile Supply Chains and Green Construction.

Funding for Israeli climate tech in 2021 $2.5B

Funding growth between 2018-2021 340%

Faster growth vs. global investments x2.6

9 https://www.ivc-online.com/LinkClick.aspx?fileticket=zoiw9HbgiiI%3D&portalid=0×tamp=1657697282819 10 Pwc, State of climate tech report, 2021, Scaling breakthroughs for net-zero (ratio for 12 months of H2 2020 and H1 2021) 11 The rise of European climate tech, dealroom.co and Talis, April 2022 12 IVC and Leumi Tech, Israeli Tech Review, Q2 2022

Israel’s State of Climate Tech 2022 Update