Israeli venture capital backed high-tech companies raised $165 million in the first quarter of 2012, half the amount raised in the preceding quarter and 52% less than in the corresponding quarter of 2011, according to the MoneyTree Report for the first quarter by pwc Israel.
48 companies raised capital during the first quarter, down from 58 companies in the preceding quarter and 83 companies in the corresponding quarter. The average investment rose to $5.6 million in the first quarter from $4.1 million in the corresponding quarter.
pwc Israel partner, High Tech Assurance Practice, Rubi Suliman said, "The plunge in venture capital investment in the first quarter of 2012 returns us to the investment levels during the uncertainty following the collapse of Lehman Brothers in 2008. The proportion of funds - 52% - which did not make any investments is the highest ever level. The reasons for the decline are the funds' advanced ages, the decline of capital available for investment, and the difficulty in raising new funds."
Suliman adds, "The level of investment will rise later this year, but we expect total venture capital investment in 2012 to be much less than in 2011."
You comment was recieved and soon will be published.
Thank you for posting your comment, which will be reviewed for publication.
Load more comments