In view of its size and proximity, EU Europe should actually be a haven for the most important investors in Israeli companies and start-ups. The fact is, however, that the USA, India and increasingly the Abraham Accords countries are more relevant than EU-Europe.
With a consistently anti-Israel policy of the EU and numerous European states, European investors are of course hesitant. Only a few investment houses dare to do so. Furthermore, the media and political echelon and the European NGOs from the industry of environmental protection and climate movement are characterized by aggressive anti-Semitism.
Finally, the year 2022 was rather a weak investment year, which has numerous reasons: from Covid to war to the economic crisis and numerous structural market adjustments combined with a rather crazy anti-Covid policy, especially in Germany.
In general the outlook of 2022 was in consequence for Israeli start-ups and companies not so bright, but OK. IVC wrote: “In 2022, Israeli high-tech companies raised $14.95 billion in 663 deals. In Q4/2022, $2.02 billion were raised in 121 deals.“
IVC is quoted on the Jerusalem Post that “Investments by European companies in Israeli startups last year totaled $1.66 billion last year, or about 10% of the total funds raised, research company IVC said.” To put the investment in relation we speak about 10% of the total investments in Israel.
Thus, EU-Europe is a rather small number. Only 9 Israeli start-ups where bought by some European “entities” with a total sum of about $2,4 billion. And no Israeli unicorn has its headquarter in EU-Europe. Also a strong and clear message.
There 66 European investment offices from which 36 from EU, 20 from UK and 10 Switzerland. So, in reality the EU is nearly a non-player for the Israel related investor industry. Other research agencies are coming to the similar results: The EU is not really a player in Israel and as VC almost inexistent.
The main VC from Europe are according to IVC aas reported on Jerusalem Post: Target Global (Germany), La Maison Compagnie d’investissement (Luxembourg) and as Non-EU European hub the LocalClub from London.
At march 2023 a conference in Tel Aviv will take place named: “Europedays: Business Opportunities, Investors and Pretzels“. They want to spark new impulses. However, It is a littler bit overstating to claim by attending the conference you have an access to 100 million “users” of the German speaking area.
And I’m not so sure whether it’s really a good speech to say once again that, as a European, you have to lecture Israel and tell you where to go. You can read on the conference website: “Meet, talk & learn from top European businesses, investors & eco-systems leaders” what sounds a little bit pretentious and cocky: Teachership.
And to write “Get pitched by leading German, Swiss & Austrian companies & investors“, does also not sound very inviting, let alone humble. And what is also for sure: Germany, Austria and Switzerland does not represent aka lead Europe. But this is an inner European beef.
However, let us hope that one or other match will fit. Eat more Hummus with Shug, than Pretzels, than it may fit. Yalla.
