Funding, Grants & Growth

A 2021-2024 overview by altshare

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By altshare Team
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February 11, 2025

Disclaimer

This report is issued by and on behalf of altshare Ltd. ("altshare") for informational purposes only and shall not be construed as legal, financial, or tax advice.

The information contained in this report is based on data provided to and/or prepared by altshare for its clients. The report is based on an aggregated and anonymized data from altshare clients. 

While this report may address potential legal, financial, and/or tax matters, it does not constitute professional advice in these areas. The opinions or conclusions expressed herein are not to be attributed to altshare. We strongly recommend that you seek the counsel of qualified advisors before taking any actions based on the information provided in this report.

For the avoidance of doubt, altshare shall not assume any liability for, nor be held responsible for any damages, losses, claims, or expenses, whether direct, indirect, incidental, consequential, special, or punitive, arising from the use or reliance on the information contained in this report.

altshare shall not be liable for any actions taken or not taken based on the information contained herein.

altshare does not warrant the accuracy, completeness, or reliability of the data presented and assumes no responsibility for any errors or omissions. The information provided in this report is subject to change without notice.

This report is provided "as is" and altshare disclaims any responsibility for the outcomes of decisions made by the recipient or any third party in reliance on its contents.

What to Expect in Our Report

Part1 - Equity Fundraising and Valuations Overview

• Equity Fundraising by Classes,Sector and Year

• EquityValuation Trends by Classes, Sector and Year

• Valuations Based on Funding

• Funds Across Sectors

Part 2 - Grants Overview

• Trends in Grant Distribution by Gender

• Accumulated Grant Distribution by Year

• Trends in Grant Distribution by Age Group

• Trends in Grant Distribution by Sectors

Part 1 - Equity Fundraising and Valuations Overview

This report analyzes key trends in equity raising across various sectors from 2021 to 2024. It includes data on the volume of equity raised, median pre-money valuations associated with these fundraising efforts, and the distribution of funds among different sectors. The primary objective is to provide a clear understanding of sector specific performance and valuation dynamics.

The analysis covers this specific period to highlight evolving trends influenced by significant events, including the COVID-19 pandemic and the war in Israel, which are reflected in the report's findings.

All data is sourced from altshare’s assessments of company valuation during this timeframe, providing insights into how external events and sectoral shifts have affected equity raising activities.

Cybersecurity Overtakes FinTech's Dominance

Preferred Seed

The Biotechnology and HealthTech sector experienced a downturn from 2022 to 2023.

In contrast, Cybersecurity showed an upward trend starting in 2022, reaching its peak in 2024.

Meanwhile, FinTech consistently outperformed other sectors across most years, hitting a high of 7 million in 2022 but faced a slight decline in 2024 placing the Cybersecurity sector at the top.

Preferred W(A)ves

Preferred A

The fundraising for AI and Data Driven Technologies has stayed mostly steady over the years, with a slight decline in 2023, followed by a recovery in 2024. However, the Biotechnology and HealthTech sector saw lower fundraising amounts compared to other industries.

Cybersecurity, which had performed well from 2021 to 2023, experienced a decline in 2024.

On the other hand,  FinTech's median funding has remained stable at about $10 million, despite a minor decrease in 2024.

FinTech Hits $20M Valuation Peak

Description

These graphs showcase the evolution of median pre-money valuations over time, categorized by sector.

By analyzing these trends, you can uncover valuable insights into how valuations have evolved, highlighting the rise in investor confidence and the increasing maturity of various sectors.

Preferred Seed

In recent years, valuations in the fields of AI and Data-Driven Technologies have remained stable, averaging around $10 million. On the other hand, the Biotechnology and HealthTech sector has seen a decline since 2022. While the Cybersecurity sector has experienced a minor rise in valuations from 2021 to 2024, with figures typically falling between $7 million and $10 million. Notably, the FinTech sector has stood out, hitting peak valuations of about $20 million in 2024.

AI Pre Money Valuation Remains Mostly Consistent

Preferred A

Valuations for AI and Data-Driven Technologies have remained stable, demonstrating steady growth and maturity despite a decline in 2023.

The Biotechnology and HealthTech, and FinTech sectors have all shown stability, with conservative growth observed, despite the downturn in 2023.

Cybersecurity, however, has consistently reported higher valuations over the years, including notably greater pre-money valuations compared to other sectors.

After experiencing a decline between 2021 and 2022, Cybersecurity has seen a steady increase since then.

Early-Stage Resilience

This graph provides a detailed look at the equity raising amounts and median pre-money valuations across different sectors over time.

• Median pre-money valuations (line graph).

• Median investment amounts (bar graph).

Observations - Preferred Seed

Median pre-money valuations have shown stability, peaking in 2022 and then experiencing a slight decline by 2024.

Investment amounts reflected this trend as well, with high points in 2022 and 2023 before a modest drop in 2024.

These trends in Preferred Seed funding indicate a stable funding environment, although a slight downturn was observed in 2024. Notably, early-stage companies tend to be less affected by market fluctuations, leading to minimal impacts on their valuations and fundraising capabilities.

A Median Valuation Rollercoaster

Preferred A

Median pre-money valuations varied significantly for Preferred A. They peaked at $45 million in 2022, dropped to $25 million in 2023, and rose to $35 million in 2024, still below the 2022 high.

Similarly, investment funding topped $15 million in 2022, declined in 2023, and partially recovered in 2024.

These companies were affected by significant market events, including the COVID-19 pandemic, the peak that followed it, a decline due to interest rate hikes in 2023, and a recovery in capital markets starting in 2024.

The Road to the 2024 Valuation Recovery

Description

This graph analyzes the percentage of valuations directly attributed to fundraising out of total valuations across sectors from 2021 to 2024.

Starting in 2022, sectors such as AI and Data-Driven Technologies, Cybersecurity, and FinTech experienced a decline, hitting their lowest point in 2023.

Although these sectors began to recover in 2024, they did not reach the highs seen in 2021.

This downturn can be linked to changes brought on by the post-COVID period in 2021-2022, along with rising interest rates in 2023 that further affected their performance.

In contrast, the Biotechnology and HealthTech sector not only bounced back but also surpassed their previous records by 2024.

Who Ate the Pie?

Description

This graph analyzes the distribution of funding  in percentages across sectors from 2021 to 2024.

Observations

AI and data-driven technologies receive over half of the funding, while the fundraising for other sectors is evenly split among the remaining amounts.

AI Keeps the Funding Crown

Preferred Seed

Description: This section shows how raised funds are spread across different sectors within the preferred seed round over the years. It highlights both the total trends and the annual allocations.

Observations: Biotechnology and HealthTech saw growth between 2021 and 2022 but experienced a decline in 2023, remaining steady through 2024.

Cybersecurity began to expand in 2023, reaching its highest investment share by 2024.

FinTech underwent a gradual decline from 2022 to 2024. Meanwhile, AI and Data-Driven Technologies initially dropped from 2021 to 2022 but recovered, approaching their investment share from 2021.

Year after year, AI and Data-Driven Technologies have remained dominant in Preferred Seed fundraising. 

AI Keeps the Funding Crown

Preferred A

Description: This section visualizes the distribution of raised funds across sectors, within the Preferred A round, over the years, showcasing both cumulative and annual allocation trends.

Observations: From 2021 to 2022, FinTech saw a notable decline, losing market share to AI and Data-Driven Technologies, which maintained stability after earlier growth.

Like Preferred Seed rounds, AI and Data-Driven Technologies also led in Preferred A rounds.

Meanwhile, the Biotechnology and HealthTech sector has steadily increased since 2021.

Cybersecurity experienced a surge between 2021 and 2022, followed by a decline, but it returned to 2021 levels by 2024.

Part 2 - Grants Overview

This report examines grant allocations across various sectors in Israel from 2021 to 2024. It provides a detailed breakdown by sector, gender, and age groups to give a clearer picture of how grants have been allocated among different demographic segments of Israeli society.

Focusing on this specific period allows us to identify emerging trends in grant distribution, especially considering significant events like the COVID-19 pandemic and the war in Israel.

These events are reflected in the findings of the report. By analyzing grant allocations during this timeframe, we gain valuable insights into how these external events and demographic factors have influenced the distribution of grants in Israel.

A Deep Dive into Sector and Gender Grant Allocations

This slide demonstrates the distribution of grants by sector and gender.

It shows that some fields have stronger female representation such as the Fintech & Insurtech and the Health Tech & Life Sciences sectors where the strong female representation is significant.

Health Tech’s Future is Female and 51+

This table illustrates gender ratios across sectors, showing that men receive more grants in the 51+ age group.

It’s noticeable that women receive a higher percent of grants in the HealthTech & Life Sciences sector compared to other industries. This trend is connected to the strong presence of women in these fields, where they have solid careers as researchers, professors, and expert scientists.

Woman at 33.33% and Counting in Industrial and Energy Technologies

The table shows that men generally receive more grants in the 41-50 age group.

This trend highlights that there are less women working in high-tech fields within this age group.

In the Fintech & Insurtech sector, 33.67% of the total grants were granted to women, while in Cybersecurity, only 17.75% of the total grants were granted to women within this demographic.

The Spotlight is on 31-40 Men

This slide demonstrates the distribution of grants by sector and gender for professionals aged 31-40.

It’s interesting to see that men received more grants, especially in the Industrial and Energy Technologies sector, which is dominated by male employees.

Young Females on the Rise

This slide demonstrates the distribution of grants by sector and gender for professionals aged up to 30.

The table shows that women in the younger age group receive a significant percent of grants, with an almost equal distribution between genders. This marks a positive shift from older age groups, indicating improved gender balance among the professionals.

The Grant Journey Across Age and Sector Over the Years

This table demonstrates the trends in grant distributions by age and sector from2021 to 2024, based on accumulated data over these years.

It is clear that employees aged 31 to 40 receive a higher percentage of grants. However, in the Industrial & Energy Tech and HealthTech & Life Sciences sector, there is a higher concentration of older professionals. As a result, we see a higher percentage of grants awarded to the older age groups in this sector.

Grant Distribution Trends Unveiled by Age

These pies outline the trends in grant allocations for all industries from 2021 to 2024 across various age groups.

Most age groups remain mostly stable in allocations throughout the years.

Midlife Money Moves In Business Software

These graphs highlight the trends in grant distributions for the Business Software sector from 2021 to 2024 categorized by age groups.

There is an increase in allocations for the 41-50 and 51+ age groups over the years. The increase comes on behalf of the younger group.

31-40 Play It Cool and Steady in Cybersecurity

These tables highlight the trends in grant distributions for the Cyber Security sector from 2021 to 2024 categorized by age groups.

Between 2022 and 2024, the grants for the 31-40 age group have remained relatively stable.

Massive Shift to Experienced Energy Experts

This data demonstrates the trends in grant distributions within the Industrial & Energy Tech sector from 2021 to 2024, categorized by age groups.

It is evident that the 51+ age group has emerged, skyrocketing from 11.31% in 2021 to 64.29% in 2024. In contrast, the up to 30 age group has undergone a decline, reaching 0% by the end of this period.

Mid-Age Experts Take Center Stage in Media & Entertainment Tech

These pies demonstrate the trends in grant distributions within the Media & Entertainment Tech sector from 2021 to 2024, categorized by age groups.

It is notable that there is a rise in grant distributions for the 31-40 age group leaving 2024 with a high of 64.44%.

Science Beyond Age

These graphs present the trends in grant distributions within the HealthTech & Life Sciences sector from 2021 to 2024, categorized by age groups.

Notably, those under 30 receive only 2%-5% of the total grants. In contrast, the grants are almost even among the other age groups, with professionals aged 31 to 40 receiving 22%-37%, those aged 41 to 50 with 29%-42%, and the over 51 group ranging between 25%-35%. This trend highlights the sector's emphasis on the expertise and experience that come with age.

The Big Jump of the Up to 30s

This table demonstrates the trends in grant distributions within the Fintech & InsurTech sector from 2021 to 2024, categorized by age groups.

It is interesting to see the trend in allocations for the up to 30 age group and the increase from 8.47% to 28.32 % between 2023-2024.

Grant Trends That Reshaped Sectors Over the Years

This graph illustrates the distribution of grants across different sectors from 2021 to 2024. During these years, all sectors experienced noticeable ups and downs.

FinTech has experienced significant growth, reaching 25.22% in 2024. In contrast, the Industrial & Energy Technologies sector saw a sharp decline, dropping to 6.25%. Business Software had the most significant changes, increasing to 32.54% in 2023 before falling to 14.06% in 2024.

The Fall of Business Software, the Rise of FinTech

This chart demonstrates the grant distribution trends for ages 31-40 from 2021-2024, revealing a shift where FinTech & InsurTech rose to dominate with 26.97% of grants in 2024, while Business Software declined sharply from 26.04% to 11.80% during the same period.

Where Did the Energy Grants Go?

This chart demonstrates the grant distribution trends for ages 41-50 from 2021-2024.

The Industrial & Energy Technologies sector saw a sharp decline from 2021 to 2024 ending with a percent a low as 2.14%.

Healthcare Grants Lead the Way for 51+

Thischart demonstrates the grant distribution trends for ages 51+ from 2021-2024.

TheMedia & Entertainment Tech sector has a low percentage of grants for olderemployees. In addition, even though there is a small decline in the health caresector, it is still the leading sector for the 51+ age group.

About altshare

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