Record-breaking funding, massive IPOs and unprecedented valuations are all now a part of what may be described as the Fintech Gold Rush.
From September of last year until January 2021, the Fintech industry in Israel acquired around $1.4 billion in funding, which makes up nearly on-fourth of all tech-focused investments during that period.
The fintech industry in Israel has grown considerably in recent months. This development is evident when we look at the overall size of recent investment rounds, the number of IPOs, and the dramatic rise in the valuations of many firms.
Recently, global private equity company Warburg Pincus LLC led a $75 million round in Israel-based Fintech firm Personetics. Fintech is firmly establishing its place and position as a major contributor to Israel’s technology sector. While cybersecurity has established a strong market, the Fintech sector is experiencing a “gold rush stage,” with firms competing aggressively. The sector has grown even more following the COVID outbreak because many more consumers are using all-digital platforms.
This year started with an overall record in total funding in local technology firms, with businesses acquiring investments worth around $1.44 billion during the month of January. While some of these huge rounds were finalized in 2020, they were officially announced just last month. Based on these developments, it is abundantly clear that the Fintech space is set to experience even more growth this year.