In the period of Israel's high-tech bubble, great amounts of easy, available money streamed into the industry and inflated it. After over two years of crisis, the money in the companies' coffers is starting to run out – and the price is painful.

A review by TheMarker indicates that a string of Israeli startups have shut down or significantly reduced their activity in the past year, with the trend being even more pronounced in recent months. Their common denominator is that their last significant funding round was in 2021 – the height of the high-tech bubble.

Some of these companies folded after the money ran out and they were unable to start a new round. In some cases, entrepreneurs report, the war in Gaza was another key cause of problems.

"It's directly tied to the war," says Kula. "Foreign investors disappeared, and those who wanted to work together said it wasn't the time. Investors in Israel who had expressed interest also decided to pull out. That's the situation in other companies, too. It's very hard to raise money, even small amounts. It's related to the decline in investments worldwide as well as with the economic and political uncertainty in Israel."