Another win for the BDS movement has been recorded after Samsung Next, the innovation sector of the Korean tech giant, Samsung, announced shutting down its operations in "Tel Aviv", occupied Palestine.Samsung Next, which has invested in some 70 Israeli start-ups so far, is the latest to join the list of companies that have left the Israeli tech sector, accounting for 50% of exports. According to the BDS movement, in 2023, investment in Israeli tech firms dropped by 56% as opposed to that in 2022.
Here is what BDS doesn't want you to know:
Samsung will continue investing in Israeli companies, just from overseas. As their email to employees announcing the decision says,
Israel remains an attractive market for Samsung Next, and the existing relationships with partners and portfolio companies will remain unchanged. ...Although our physical presence in Israel will cease, we remain committed to investing in the region and encouraging referrals from builders and founders.
Samsung Next has no presence in any other countries besides the US and South Korea, so this appears to be a consolidation.
Here's what else BDS doesn't want you to know: The lower investment in tech firms in 2023 was a worldwide phenomenon, not just for Israel.
And yet another thing the BDS movement doesn't want you to know: Since October 7, Israel's high tech sector has still gotten lots of new business. As Startup Nation General reports:
Private investment rounds: There were 220 private investment rounds announced since October 7th, with an estimated $3.1 billion raised.
M&As: The sum of M&As since October 7th is $3.7 billion. There were two very large M&A deals finalized with total acquisition amounts nearing $1 billion. Additionally, nine acquisition deals of over $100 million were finalized, six of which were in the security technology sector.
New Funds: Since October 7th, over 20 new funds have been established, raising a total of $1.7 billion.
Reports of the death of Israel's tech economy are highly exaggerated.
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