The number of angel investors in the Israeli technology sector has fallen by 75%. Early-stage startups have been hit hard by this trend.
The decline comes despite a legal amendment that aims to attract them to companies in Israel. Last July the Knesset approved the “Angel Law,” or the Law to Encourage Knowledge-Intensive Industry. Other benefits include a tax exemption for private investors who invest in early-stage startup. The Israeli Tax Authority and the Ministry of Finance say that these benefits are intended to encourage private investment, especially from strategic investors.