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Israel: What is the assessment of the health technology sector in 2024?

Writer's picture: Caroline HaïatCaroline Haïat


The year 2024 in Israel was marked by a war fought simultaneously on seven fronts against a fierce enemy. This year also proved to be a challenge for the country’s health technology sector. Startup Nation Central recently released the Top 100, highlighting the best health technologies of 2024. This ranking, based on the Finder platform, showcases Israel’s innovation and transformative impact in the health technology field, as well as the investors, companies, and notable advancements in the ecosystem. We interviewed Yael Pomerantz, who wrote this report, reflecting the state of the healthcare sector, disrupted by the current situation. She particularly highlighted the 100 most notable companies of the year, which attracted significant investments or raised substantial funds. A new report will be released next month, giving the public the chance to select via a survey the company they believe is the best of the year.


"We’ve compiled a summary of 2024 to highlight the companies that have best managed to overcome the current crisis and stand out, particularly through their cutting-edge technologies. The healthcare sector is divided into three areas: medical devices, digital health, and biotechnology. We meticulously studied which companies received the most investment in these fields, especially new startups. We also looked at the most representative investors and international companies involved in investments or acquisitions. In doing so, we captured the investment dynamics behind the success of these leading companies," said Yael Pomerantz, head of the health technology sector at Startup Nation Central.

Yael Pomerantz
Yael Pomerantz

"The Finder platform provides a concrete overview of the Israeli ecosystem, including all investors and companies. Thanks to it, we have gathered the top 100 companies of the year," she added.


The document written by Yael serves as a guide to understanding the key players in biopharmaceuticals, digital health, and medical devices, multinational companies actively engaged in the Israeli market, and the investors fueling these transformative companies. Despite a year marked by economic uncertainty and geopolitical instability, the Israeli health technology sector continues to reshape global healthcare with bold innovations.


"This year has been particularly difficult, marked by fears, unknowns, and security challenges. We faced antisemitism from abroad, and Israel’s image was not in the best shape. Within companies as well, it was challenging to raise funds, but compared to previous years, our position in the global market has not changed much. In Israel, people worked tirelessly to maintain their operations despite the surrounding chaos, with a lot of resilience. There were fewer investments, but the amounts were larger. When international companies invest in an Israeli startup, for example, it strengthens our confidence in our knowledge, our economy, our innovations, and our solutions to improve healthcare. It’s very rewarding," says Yael Pomerantz to Itonnews.

Startup
Startup

Indeed, private funding slightly decreased in 2024, but the average size of transactions surged. Private funding in health technologies in 2024 reached approximately $1.2 billion, showing sustained momentum with a modest decline compared to the $1.6 billion raised in 2023. Digital health dominated the sector, attracting $545 million, followed by medical devices with $380 million and pharma/biotechnology with $262 million. A notable trend in 2024 was a significant increase in the average funding amount per transaction.


Major Challenges


"The majority of companies had to continue operating despite having their employees called up as reservists to Gaza and Lebanon. It’s not easy to raise funds and run a company with a constant lack of staff, but despite all that, they succeeded. Many companies struggled to find investors, but this is not necessarily related to the war in Israel; 2024 was a particularly tough year globally. Recent startups were hit hard by this slowdown in activity, which is why it’s crucial to support them so they can recover and survive in the future," explains Yael Pomerantz.


The mental health sector also faced a significant influx of patients due to the trauma caused by the October 7 massacres. The lack of staff and the rising demand for care created new opportunities for companies developing technologies in this field. "Our goal in 2025 is to see how these companies can contribute to improving the mental health of patients who need real support," says Yael.


2024 witnessed a number of exits, with the medical devices sector leading the way. While IPO activity remained moderate, notable listings such as Nuvo Group and Silexion highlighted the value of Israeli health technologies. Multinational companies are key drivers of the Israeli innovation ecosystem, injecting substantial capital into the economy while significantly enhancing the global visibility of Israeli technology. These strategic moves promote the transfer of valuable knowledge, accelerate technological advancements, and create high-value jobs, further solidifying Israel's position as a global innovation hub.


"In Israel, the healthcare sector is the largest in terms of startups. It includes some highly influential companies, not only in healthcare but also in cybersecurity and artificial intelligence. Israel has a culture of innovation and intellectual curiosity, a fertile ground that allows for the emergence of a multitude of companies, earning it the title of Startup Nation. It is essential that this potential is leveraged," urges Yael.

According to her, Israeli companies have a leading role to play globally as leaders in various healthcare sectors. "Populations are aging and living longer, so they need sustainable solutions to stay healthy. Israel has all the capabilities to position itself as a leader and provide real solutions to revolutionize healthcare, especially thanks to its high-level professionals and a very advanced healthcare system," says Yael. Currently, the United States and Europe are the most interested in Israeli technologies, but the Jewish state has the ambition to conquer the rest of the world, particularly by focusing on digital health.


Caroline Haïat




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