Israel-based life sciences companies received the largest share of seed and early-stage investments in the Israeli hi-tech industry in the first quarter of 2009. 43% of seed investments, and 34% of early-stage investments, went to life sciences start-ups.
Of all hi-tech capital raised during the first quarter, 19% went to life sciences companies, representing the third largest sector.
The figures are based on an Israel Venture Capital Research Center - IVC survey conducted ahead of the ILSI-Biomed Israel Conferenceon June 15-17.
Twenty-five seed and early-stage life sciences companies raised $50 million in the first quarter of 2009, equaling 24% of the capital raised in the entire hi-tech industry. Medical device companies raised $28 million, 56% of the total capital raised in the life science sector, and 11% of the capital raised in all hi-tech sectors.
ILSI chairperson Ruti Alon said, “These results, appearing only weeks before the ILSI-Biomed Conference, highlight how important the biomedical and life-sciences industries have become, even during the economic slowdown."
The $50 million raised by life sciences companies, however is 66% lower than the $147 million raised by 21 companies in the first quarter of 2008 and 23% lower than the $65 million raised in the last quarter of 2008.
The total raised by medical device companies represents a decline of 56% in comparison to the first quarter of 2008 where 14 medical device companies raised $63 million and a drop of 3% in comparison to the last quarter of 2008 in which nine such companies raised $29 million. “Despite the decrease in capital raising from 2008, the fact that we are continuing to see strong investments in Israeli seed- and early-stage life sciences companies shows a lot of promise for the future of this sector,” said Alon.
ILSI-Biomed Israel, set to take place in Tel Aviv between June 15 and 17, 2009, is a major international conference covering the fast-growing field of innovation in the biomedical, health care and life sciences industries.
Published by Globes [online], Israel business news - www.globes-online.com - on May 17, 2009
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