According to the Israeli Innovation Authority, total funding for Israel’s Food-Tech industry in 2019 reached $135 million as of Q3 2019. "The level of investment we are seeing in local start-ups proves that we are on to something big”, said David Malits, founder and CEO of DM Communications.
Israel’s $1.2 billion food-tech industry is booming. With agriculture employee productivity 26% higher than in OECD countries and start-up fundraising rounds closing out at $135 million as of the end of Q3 2019, there is a reason to believe that this is only the beginning.
Israeli companies have long been hailed for their revolutionary innovations in efficient irrigation and harvesting technologies. According to the Israeli Innovation Authority data, Start-Up Nation Central, and IVC, the amount of funding from 2013-2018 in the food-tech industry has almost tripled from $52 million in 2013 to $135 million in 2019. This is in a country with 250 businesses that define themselves as food-tech companies.
Accustomed to developing technologies as new opportunities arise, Israeli companies are always pushing the limits of technological efficiency. “Just as in OECD countries, here in Israel there is an increasing need to make each industrial worker more productive. The level of investment we are seeing in local start-ups proves that we are on to something big. Not only changing food procurement for Israel, but for the world", said David Malits, founder and CEO of DM Communications.
The food industry is considered one of the largest and oldest manufacturing industries in the world. The financial value of the world’s food and agriculture industries is estimated at $ 8.7 trillion in 2018. While locally developed technologies are shared with nations around the globe, Israeli agricultural exports make up a mere 1% of domestic exports.
“Israel in many ways is a bit like a start-up company. The country grew and developed at a very rapid rate; Faster than the pace of development of various infrastructures. The gap between the need of different markets and the lack of infrastructure capable of responding to rapid growth are some of the most prominent catalysts for the development of the technological dimension in the country”, said Malits.
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