PYMNTS.com published an interesting, metric-based post on the tech scene in Israel. The post emphasized that while the country has a well deserved reputation as a “cybersecurity hotspot,” it is also true that “Israel’s tech ambitions and prowess extend much further.”
The salient statistic for me: 430—the number of fintech startups headquartered in Israel—is highly impressive, considering only 90 fintech startups existed in 2009.
With that in mind, here’s a look at some recent Israel-based Finovate alums who are helping make the country one of the world’s key locations for fintech innovation.
- BioCatch—FinovateFall 2014. Founded in 2011; based in Lod; $11.6 million in funding.
- CallVU—FinovateSpring 2016. Founded in 2012; based in Tel Aviv; funding undisclosed.
- Capitali.se—FinovateEurope 2016. Founded in 2014; based in Tel Aviv; funding undisclosed.
- Earnix—FinovateSpring 2016. Founded in 2001; based in Tel Aviv; $7 million in funding.
- NICE Systems—FinovateEurope 2015. Founded in 1986; based in Raanana; trades as NICE on NASDAQ; market capitalization of $3.8 billion.
- OurCrowd—FinovateSpring 2016. Founded in 2013; based in Jerusalem; $35 million in funding.
- Personetics—FinovateEurope 2016. Founded in 2011; based in Tel Aviv; $18 million in funding.
- ThetaRay—FinovateFall 2015. Founded in 2013; based in Jerusalem; $25 million in funding.
- TipRanks—FinovateFall 2013. Founded in 2012; based in Tel Aviv; $3 million in funding.
- Top Image Systems—FinovateSpring 2015. Founded in 1991; based in Tel Aviv; trades as TISA on NASDAQ; market capitalization of $33 million.
- VATBox—FinovateEurope 2015. Founded in 2012; based in Herzilliya; $24 million in funding.
- Versafe—FinovateFall 2013. Founded in 2009; based in Rishon Le Zion; acquired by F5 Networks, terms undisclosed.
- Voitrax—FinovateFall 2015. Founded in 2015; based in Jerusalem; funding undisclosed.
- Zooz—FinovateFall 2013. Founded in 2010; based in Raanana; $40.5 million in funding.
Our 14 Israel-based Finovate alums have raised more than $164 million in funding. Two alums—NICE Systems and Top Image Systems—are publicly traded on the Nasdaq, and two more—Capitali.se and TipRanks—have won Best of Show awards.
There’s no doubt the fintech in Israel is on the move. The country’s first fintech hub, The Floor, was launched in 2015, and as of March 2016 is now located at the Tel Aviv Stock Exchange. Writing about why fintech innovation is thriving in Israel, VentureBeat’s Avi Zeevi of Carmel Ventures highlighted a few key features:
- Mastery of relevant technologies such as real-time analytics, cybersecurity, and risk management
- Legacy of success creating a “startup ecosystem (with) massive amounts of knowledge”
- The country has learned from other key global financial centers
- Global financial institutions have a presence and have been investing in Israel
- Israeli FIs “have always been open to innovation”
“All of this had led to a dramatic rise in investments in Israel fintech companies,” Zeevi wrote. “By addressing the needs of both developed and emerging markets, Israeli fintech will only continue to grow.”
Are you an Israel-based Finovate or FinDEVr alum that we overlooked? Send us an email at firstname.lastname@example.org and we’ll update our roster.