Above: Value of Deals Involving Japanese Investors
Israeli high-tech industry has became a major attraction for Japanese investors. Since 2010, Japanese investment deals in almost all types of Israeli high-tech companies have continued to grow, while the number of investment deals involving Japanese investors in the second half of the decade has nearly tripled compared to the first half. A new market research, Japanese Investments in Israeli High-Tech Companies, predicts that regardless the COVID-19 pandemic – 2020 is expected to be a record year in Japanese activity in Israel.
The newly released study was made by IVC-Online, Meitar Law Offices and Magenta Venture Partners. The researchers estimate that based on information for the first half of 2020, “Japanese investors’ activity in Israeli hightech companies remained at least at the same level as in 2019, which was a peak year during which Israeli companies raised over $1.5 billion in investment deals involving Japanese investors.”
From 2017, there has been increasing diversity in the types of Japanese investors, including car manufacturers, financial institutions, insurance companies and VCs. Based on H1/2020 data, the upward trend in the number of Japanese investors appears to be continuing. In the years 2010–2019, there were 10 M&A deals and buyouts of Israeli companies by Japanese acquirers, with a total value of $2.34 billion.
The acquisition of NeuroDerm by Mitsubishi Tanabe in 2017 for approximately $1.1 billion, is the largest M&A deal in Israel by a Japanese entity. Recent Investments Led by Japanese Investors include the Hailo’s $60 million raising (led by NEC) in March 2020, Cybereason’s fifth round of $200 million (led by SoftBank) in August 2019, and Lemomade’s $300 million funad raising, also led by SoftBank, from April 2019.