Gender Disparity in Israeli Tech: Only 12% of Entrepreneurs Securing Initial Funding in 2023 Were Female

A recent report by RISE Israel, formerly known as Start-Up Nation Policy Institute, has brought attention to the low level of women’s participation in the Israeli high-tech industry. The statistics revealed that only 12% of entrepreneurs who secured their initial funding in 2023 were female.

Furthermore, the report indicated that a mere 17% of the startups that raised their first funding last year had at least one female founder. These figures are notably lower than the equivalent statistics for the U.S. and Europe, which stood at 26.2% and 25.5% respectively, according to data from Pitchbook. Additionally, a gender analysis found that 57% of the female entrepreneurs securing initial funding were in the Life Sciences and Health-tech sector, while 14% were in Agrifood-tech and Water, and 10% were in Retail and Marketing.

The lack of diversity in Israeli tech is highlighted by the fact that all 15 CEOs of the companies that completed megarounds in 2023 were male, and all of these companies were based in the country’s central regions. Furthermore, the number of mega-rounds in Israel declined significantly from 40 in 2022 to just 15 in 2023, accumulating over $2.3 billion, which represents over 30% of the total investments in Israel in 2023. It is also noteworthy that only two of these companies, one in Life Sciences and Health-tech and one in Smart Transportation, are not purely software-based.

It is evident that software companies dominated the startups that secured their first funding in 2023, with over 60% falling into this category. However, it is worth noting that this number is actually higher, as some startups in the Life Sciences and Health-tech sector are also developing digital health solutions, making them essentially software companies.

These findings bring to the forefront the pressing issue of gender disparity in the Israeli tech industry, particularly in the allocation of funding and leadership positions. The report serves as a call to action for the industry to address and rectify these disparities, and to take proactive steps towards fostering a more diverse and inclusive ecosystem.

As the tech industry continues to play an increasingly pivotal role in the global economy, it is imperative that efforts are made to ensure that all individuals, regardless of gender, have an equal opportunity to contribute and succeed in this sector. This not only fosters innovation and creativity, but also leads to a more robust and sustainable industry overall.