Israel's high-tech industry had its worst quarter in the first quarter of 2012 in terms of capital raised since the first quarter of 2011, according to IVC Research Center and KPMG Somekh Chaikin Israel. Their survey finds that 144 Israeli high-tech companies raised $483 million during the first quarter, down from the below $569 million raised by 124 companies in the preceding quarter, but up just 0.8% from $479 million raised by 140 companies in the corresponding quarter of 2011.
Israeli venture capital funds invested $119 million in Israeli companies during the first quarter, 10% less than the amount invested in the preceding quarter, and 13% less than invested in the corresponding quarter. Israeli venture capital funds accounted for 25% of total investment in the first quarter, up from the 23% share in the preceding quarter, but less than the 28% share in the corresponding quarter.
Investment without the participation of Israeli venture capital funds totaled $236 million in the first quarter, 49% of total transactions, the highest share in a decade.
First investments by Israeli venture capital funds accounted for 48% of their total amount invested in the first quarter, the highest percentage in the last four years.
IVC Research Center CEO Koby Simana said, "Total investments by Israeli venture capital funds are still relatively low compared to the past, however both in the fourth quarter of 2011 and the first quarter of 2012, we noted that nearly half of the funds’ investments went toward first investments - i.e. new portfolio companies. The data is not enough to point to a new trend yet, but these are certainly encouraging news for the Israeli high-tech industry."
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