“Globes” sat down with tech company CEOs to better understand their challenges in 2023: what motivates them and what needs to be done to ensure that new investments will keep coming?
Adv. Ran Cohen, Partner at our Hi-Tech & Venture Capital department, answered to Globes –
“Worldwide economic instability combined with the current political situation following proposed judicial reform legislation in Israel has led to uncertainty regarding the future of investments in Israel, specifically in Israel’s high-tech industry. Despite the reservations of many, we are not witnessing a dramatic influence on early-stage investments; and we can expect a successful year for early-stage companies.
Unfortunately, we cannot say the same about more mature companies faced with the consequences of having raised capital at an extremely high valuation before the crisis began and which are now looking for financing. The best solution for such companies is using SAFE/Convertible Loan agreements that will currently allow them to avoid massive dilution. Another trend that we see more of is the return of Venture Lending as an alternative financing solution for growth companies. Last, but not least, we expect more M&A transactions with the sole purpose of purchasing IP or Acquihire transactions.”
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