Israeli Bank Leumi to establish a $77M high-tech fund for Israel’s 77th independence anniversary

Israel's Bank Leumi intends to establish a $77M high-tech fund to mark the upcoming 77th anniversary of Israel’s independence, the CEO Hanan Friedman announced at the joint Calcalist-Leumi conference in Miami, Florida, held on Nov. 13-15.

Friedman praised the resilience of the Israeli economy and stressed the bank’s central role in preserving it.

"For more than a year, Israel has been at war, and throughout this time, I have been asking myself what we, as the largest bank in Israel, can do and what our role is on a national level. For me and for the bank, the answer is clear: to continue driving the economy forward and doing everything possible to enable the Israeli economy to demonstrate its incredible resilience," Friedman told the audience.

He emphasized that the Israeli tech sector is the leading growth engine for the Israeli economy.

"The primary growth engine of the Israeli economy is the high-tech industry, which continues to thrive even now. This is because the war has created a unique situation: we have no choice but to develop innovative, groundbreaking technologies in a short time," Friedman assessed.

He said the new tech fund is designed to stimulate further growth and innovation in the Israeli tech sector.

"This is why we decided to take a significant step forward by establishing a $77 million high-tech fund. The amount reflects the next year of Israel's independence, and the fund will invest in companies developing new technologies, including those aimed at saving soldiers’ lives on the battlefield," Friedman stated.

While the Israeli economy is currently facing challenges due to the ongoing war, Friedman is optimistic about the future of the Israeli economy and the growing number of unicorn businesses.

"We are launching this new fund precisely now because we believe the industry will emerge even stronger after the war. The world needs to know that Israeli high-tech is ready to shape the global future through technology."

He continued, "A recent study by Stanford University, analyzing the origins of companies valued at over $1 billion – including 500 unicorns – ranked Israel second out of 65 countries, ahead of nations like China, Germany, and France. The study found that 52 unicorn founders hail from Israel," Friedman said.

Despite high defense costs due to the war, the Israeli financial deficit shrank to 7.9% of the Gross Domestic Product (GDP) in October, the Israeli Finance Ministry revealed in a recent report.

Following the Hamas Oct. 7 attack in 2023, Israel mobilized some 300,000 reservist soldiers within 48 hours. While reservists play a critical role in the Israeli military, they also play leading roles in the Israeli tech industry. Lengthy military service has, therefore, impacted the local tech sector amid the war.

However, Friedman remains upbeat about the strength of the Israeli tech ecosystem and its ability to innovate despite many challenges.

"Even today, despite extended reserve service by many in the high-tech industry – and perhaps because of it – we are witnessing numerous innovative developments. These challenges only strengthen our entrepreneurs and companies. Over the past year, we’ve seen the emergence of a new generation of entrepreneurs, and I am confident that with our new fund, many more will join them. The future of Israel will continue to be built on high-tech, creativity, and boldness," Friedman concluded.