Israeli high-tech companies raised $522 million in the third quarter of 2011 from Israeli and foreign venture capital funds, IVC and KPMG Israel Somekh Chaikin reports, 8% less than in the preceding quarter, but 53% more than in the third quarter of 2010.
Israeli high-tech companies raised $1.57 billion in January-September from Israeli and foreign venture capital funds, 71% more than in the corresponding quarters of 2010.
Israeli venture capital funds invested $96 million in Israeli companies in the third quarter, 40% less than in the preceding quarter and 12% less than in the corresponding quarter. They invested $392 million in Israeli companies in January-September, 41% more than in the corresponding months. Israeli venture capital funds accounted for 25% of capital raised by Israeli companies in the third quarter, down from 30% in the corresponding quarter.
First investments by Israeli venture capital funds accounted for 30% of total investment in the third quarter. The average first investment was $1.93 billion, and the average follow-on investment was $850,000.
Software start-ups raised $115 million in the third quarter, 22% of total investment, followed by $114 million raised by communications start-ups, $93 million by Internet start-ups (18% of total investment), and the life sciences, which accounted for 16% of total investment.
$48 million was invested in seed-stage companies in the third quarter, 9% of total investment, compared with 2% in the preceding quarter and 1% in the corresponding quarter. This was the largest amount of seed investment since the 2008. Mid-stage companies raised $215 million, 41% of total investment.
Published by Globes [online], Israel business news - www.globes-online.com - on October 24, 2011
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