The rate of new investments by Israeli venture capital funds has been very slow in recent years. Funds with money were stingy in disbursing it, while others have no money to disburse at all. New investments per fund are down to 2-3 a year from 7-8 in 2007.
Half of Israeli venture capital funds made no new investments in Israel at all last year, up from 42% of funds that made no investments in 2009, according to Israel Venture Capital Association's (IVC) "Most active venture capital funds in Israel", released today.
69% of the 75 new investments made in Israel in 2010 were by Israeli funds, with foreign funds making up the balance. Evergreen Venture Partners led the rankings, with six new investments, followed by Battery Ventures and Pontifax Fund, with five new investments each. Gemini Israel Funds, Genesis Partners, Cedar Fund, and Carmel Ventures each made four new investments.
Pitango Venture Capital made just three new investments last year.
32% of new investment was in seed-stage start-ups, 24 deals, down from 35% in 2009. Eight of the 20 Israeli venture capital funds that made new investments in 2010 did not make seed investments.
The breakdown of investment by sector shows that 25% of first investments were in Internet start-ups (19 deals) and 23% (17 deals) in software companies, similar to the levels in 2009. Life sciences was in third place, at 16% (12 deals).
Published by Globes [online], Israel business news - www.globes-online.com - on March 29, 2011
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