Market Insights Financial Capital Raising Digital Capital Raising

Crowdinvesting - Israel

Israel

The total transaction value in the Crowdinvesting market in Israel is projected to reach €11.43m in 2024.
When comparing globally, it is evident that the United Kingdom leads with a transaction value of €564m in 2024.
Israel's tech-savvy population drives a surge in crowdinvesting platforms, propelling the country to the forefront of innovative capital-raising strategies.

Key regions: Europe, Australia, Brazil, China, Israel

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Analyst Opinion

The Crowdinvesting market in Israel has been experiencing significant growth in recent years.

Customer preferences: Investors in Israel are increasingly turning to crowdinvesting as a way to diversify their investment portfolios and gain exposure to innovative startups. The younger generation, in particular, is showing a strong interest in crowdinvesting, as they are more open to taking risks and investing in early-stage companies. Additionally, the ease and convenience of online platforms have made it more accessible for individuals to participate in crowdinvesting campaigns.

Trends in the market: One of the key trends in the crowdinvesting market in Israel is the rise of equity-based crowdinvesting. This allows investors to acquire shares in startups and potentially benefit from their growth and success. Equity-based crowdinvesting provides a higher potential return on investment compared to other forms of crowdfunding, such as donation or reward-based campaigns. This trend reflects the growing confidence in the Israeli startup ecosystem and the belief that these companies have the potential to generate significant returns. Another trend in the market is the increasing number of crowdinvesting platforms and campaigns. As the popularity of crowdinvesting grows, more platforms are emerging to cater to the demand. These platforms provide a marketplace for startups to connect with potential investors and raise funds for their projects. The diverse range of campaigns available on these platforms allows investors to choose projects that align with their interests and investment goals.

Local special circumstances: Israel has a vibrant and dynamic startup ecosystem, which has contributed to the growth of the crowdinvesting market. The country is known for its innovation and entrepreneurial spirit, with many successful startups emerging from Israel in recent years. This entrepreneurial culture has created a fertile ground for crowdinvesting, as investors are eager to support and participate in the growth of these startups. Furthermore, the Israeli government has implemented policies and initiatives to support the growth of the startup ecosystem, including crowdinvesting. These policies aim to attract both local and international investors to invest in Israeli startups, providing them with the necessary funding to develop their innovative ideas. The government's support has helped to create a favorable environment for crowdinvesting in Israel.

Underlying macroeconomic factors: The strong performance of the Israeli economy has also contributed to the development of the crowdinvesting market. Israel has a robust and stable economy, driven by sectors such as technology, healthcare, and cybersecurity. These sectors are attractive to investors, as they offer high growth potential and opportunities for innovation. The positive economic outlook has increased investor confidence and willingness to participate in crowdinvesting campaigns. Additionally, the low-interest-rate environment in Israel has made traditional investment options less attractive. With interest rates at historic lows, investors are seeking alternative investment opportunities that offer higher returns. Crowdinvesting provides an avenue for individuals to invest in high-growth startups and potentially earn higher returns on their investments. In conclusion, the crowdinvesting market in Israel is experiencing significant growth due to customer preferences for diversification and exposure to innovative startups. The rise of equity-based crowdinvesting and the increasing number of platforms and campaigns are key trends in the market. The vibrant startup ecosystem, government support, and strong economy are local special circumstances that have contributed to the development of the crowdinvesting market in Israel.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.