Israeli venture capital-backed high-tech companies raised $1.2 billion in 2007, the same amount as in 2006, according to the PricewaterhouseCooper Israel - Kesselman and Kesselman's MoneyTree report for the fourth quarter and year as a whole. The average investment in 2007 was $3.9 million, down from $4.1 million in 2006.
During the fourth quarter, 69 start-ups raised a total of $221 million, 37% less than in the preceding quarter, and 33% less than in the corresponding quarter of 2006. The average investment fell to $3.2 million from $4.7 million in the preceding quarter and $4.1 million in the corresponding quarter.
The number and size of investments in early-stage start-ups reached an all-time high of $180 million in 30 companies in 2007, 15% of the total venture capital investment, compared with $158 million invested in 25 early-stage companies 2006, 13% of total investment.
The Office of the Chief Scientist invested $96 million in 30 start-ups during the fourth quarter and $480 million in 114 start-ups during the year.
A breakdown of investment by sector is as follows:
- Software - 18 companies raised $47 million in the fourth quarter and 77 companies raised $242 million during the year. Software accounted for 21% of all investment and 30% of the companies raising capital in the fourth quarter.
- Communications and Internet - 14 companies raised $58 million in the fourth quarter and 84 companies raised $365 million during the year. This sector accounted for 27% of all investment and 27% of the companies raising capital in the fourth quarter.
- Life sciences, including medical devices and biotechnology - 15 companies raised $32 million in the fourth quarter. Sector companies raised $203 million during the year. The life sciences sector accounted for 14% of all investment and 20% of the companies raising capital in the fourth quarter.
- Semiconductors - five companies raised $51 million in the fourth quarter. Companies raised $185 million during the year.
The MoneyTree report did not cite figures for cleantech as a separate category, aggregating it under "Other".
Published by Globes [online], Israel business news - www.globes-online.com - on January 23, 2008
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