Following two record-breaking months, where Israeli startups raised $2.7 billion and $2.3 billion respectively, the “dip” has come. Kind of. In May, the startups secured just $2 billion in funding, covering 41 total deals. This may be a drop off compared to previous months - but still keeping up the record-setting average for the ecosystem.

Startup exits making a major comeback

Unlike our regular recaps, this time we’ll begin with the milestones usually saved for the end - startup exits. Over the month of May, eight Israeli startups sold the keys to their “house” to another company; representing an increase in comparison to previous months (April with 5 and March with only 3).

When it comes to these acquisitions, the enormous sums are what stands out. Among the announced acquisitions, 3 of the startups were sold for a total of $800 million - Wandera for $400 million, Prospera for $300 million, and Sedona for $100 million.

Two other Israeli startups - Beyond Security and White Hat - were acquired for tens of millions of dollars, according to estimates; adtech startup Mabaya was sold for $10 million. Full details of the acquisitions of Rise.ai and Zeekit still remain unknown. In total, 8 Israeli startups were acquired for an estimated price of nearly $1 billion.

And now back to Israeli startup fun-dings this past month. As mentioned, the month of May marks a slight drop in fundraising, however, still keeping the bar high at $2 billion. Despite a month burdened by social and political unrest, investors still saw the incredible potential in Israeli innovation.

With that said, we continue to witness a growing trend over the past months - investors are focusing their capital towards later stage companies (27 rounds of Series B and up), instead of supporting startups raising their Series A or Seed rounds (only 12 in May). Of course, we also had a few mega rounds in May, including Forter banking $300 million, and an additional three startups bringing in over $100 million each. Two of those companies, Sunbit and HoneyBook, are the newest entries into the Israeli Unicorn stable.

To better understand the significance of achieving a third straight month of Israeli startups reeling in over $2 billion, it’s enough to look up May’s totals from the past two years. Last year, during the peak of COVID madness, Israeli startups secured a total of only about $360 million. In 2019, even without the chaos of a global pandemic, the startup ecosystem managed to raise only a bit more at $457 million.

In addition to the increased amount of M&A activity and nearly 40 funding rounds, last month two Israeli startups also went public: SimilarWeb listed on NASDAQ at a $1.8 billion valuation and chip manufacturer Valens took the SPAC route to a $1.16 billion valuation.

May 2021 Investments

SiSense, SimilarWeb, & face.com founders invest in InfinGrow's MarTech marvel. Read more...

Israeli startup claims superior imaging tech over Google, Adobe, and others. Read more...

Vast Data nabs $83M from NVIDIA, and bumps valuation up to $3.7B. Read more...

HoneyBook joins the Unicorn club. Read more...

Vim raises $60M to heal U.S. healthcare. Read more...

Pecan.ai cracks open $35M from Slack and Airbnb investor. Read more...

Cyber startup Cycode lands $20M from Insight Partners. Read more...

Lili banks $55M on growth of freelancer economy. Read more...

Planck raises $20M.

Stampli scores $55M because invoicing should be easier. Read more...

Team8 founded VisibleRisk nabs $25M. Read more...

UltraSight wants AI to help with ultrasound diagnosis. Read more...

Explorium raises $75M from Insight Partners.

ThetaRay scores $31M to prevent financial terror online. Read more...

Fintech startup Sunbit goes Unicorn.

Veteran Israeli firm Formlabs announced $150M in funding.

Salto raised $42M from Accel.

AnyClip lands $47M and launches a new product. Read more...

Sodius Labs raised $20M to monitor and enforce the world of crypto.

Cynerio secures $30M to defend the healthcare cyber space. Read more...

Upstream Security scores $36M in funding, and expands outside the automotive cyber game. Read more...

Forter raises $300M, because eCommerce needs fraud protection. Read more...

17 years in the making: Ramon.Space lands $17.5M. Read more...

Wiz won't stop funding, add another $120M from Salesforce. Read more...

Big League investor IVP leads $45M round in Hello Heart. Read more...

Parametrix scores $17.5M, offering insurance for cloud downtime. Read more...

Lightrun raises $23M to debug in real-time. Read more...

Salt Security lands $125M in less than a year to prevent API attacks. Read more...

Snappy raises $70M, so everyone can choose their own gift. Read more...

DayTwo secures $37M facilitating food as medicine. Read more...

SAM raises $20M.

Cymulate raises $45M.

Engageli scores $33M.

KANDO lands $6M to detect COVID-19 in the sewers.

Authomize raises $16M.

SpliSense raises $28.5M to help treat cystic fibrosis.

Getty Images invests $16M in Israeli startup Promo.com.

KAHR lands $5M.

Laguna Health scores $6.6M to help with recovery.

RightBound scores $12M to improve B2B sales.

Hyro brings in $10.5M.

Rapid Medical lands $50M to treat strokes.

May 2021 IPOs and SPACs

SimilarWeb went public at a $1.8B valuation.

Valens goes SPAC at $1.16B.

May 2021 M&As

Big win for Agtech AI: Prospera acquired by Valmont. Read more...

Jamf acquires Wandera for $400M. Read more...

Walmart ups fashion game with acquisition of Israeli startup Zeekit. Read more...

Wix acquires smart gift card company Rise.ai. Read more...

EPAM acquires White-Hat for tens of millions of dollars.

Cisco continues to shop in the Israeli aisle, with $100M acquisition of Sedona.

Beyond Security acquisition hits 8 digits.

French company Criteo acquires adtech startup Mabaya.

May 2021 VC activity

New joint British-Israel VC club deepens business ties. Read more...

IronSource and Wolt investor nabs another $550M for 6th fund. Read more...