Jerusalem: A recent survey conducted by the Israel Innovation Authority has revealed that 80% of Israeli hi-tech companies will require additional capital within the next six months to sustain their operations. Nearly half of the companies surveyed reported that they could run out of funds without new investment, with 43% identifying fundraising as their primary challenge. This reflects global investors' cautious approach amid the current conflict and volatile security situation in the region.

The ongoing war has caused significant operational disruptions for many companies. Around 30% reported delays due to prolonged military reserve duty, particularly among key personnel. In addition, 74% cited flight cancellations as a major obstacle to conducting business internationally. To adapt, many companies have implemented cost-cutting measures such as layoffs and reductions in operational expenses.

These challenges have also affected companies’ ability to meet their goals. Approximately 62% of respondents acknowledged that the conflict has hindered their ability to achieve development and sales targets. Despite these difficulties, the sector remains cautiously optimistic. About 70% of companies anticipate sales growth, and nearly half expect employment growth both in Israel and abroad, highlighting their ability to adapt under pressure.

However, optimism about the overall success of Israeli hi-tech remains tempered, with only 38% of respondents expressing confidence in the industry’s outlook for the coming year. The survey underscores the importance of international investment and government support to stabilize the sector during this challenging period. While the Israeli hi-tech industry has shown resilience, its long-term success will depend on addressing immediate financial and logistical constraints effectively.