Israel’s health technology sector has experienced significant growth in recent years, emerging as a prominent component of the country’s hi-tech landscape, according to a report released by the Israeli IVC Research Center on Tuesday.
The number of health tech companies in Israel has risen from 1,379 in 2015 to 1,810 in 2022, accounting for 20 percent of all Israeli hi-tech companies, as highlighted in the 2022 Annual HealthTech Ecosystem Report jointly authored by IVC and global health tech and life sciences investment fund aMoon.
The report further reveals that capital raised by Israeli health tech companies has surged by 80 percent over the past five years, reaching a total of 2.8 billion U.S. dollars in 2022. Notably, the digital health and biotechnology sectors have been key drivers of this growth, both in terms of the number of companies and the amount of fundraising.
Israel’s advanced and digitized healthcare system, coupled with its expertise in digital transformation, has positioned the country to foster growth in these subsectors, the report noted.
The increase in the average deal size is a significant growth driver for Israel’s health tech sector, more than doubling from 6.2 million U.S. dollars in 2018 to 13 million U.S. dollars in 2022.
Moreover, more than 63,000 people work in Israel’s health tech sector, making up about 14 percent of the country’s total hi-tech workforce. As the sector continues to expand, there is a growing demand for non-traditional healthcare entrepreneurs and skilled employees, the report added. ■
