An Israel Venture Capital Research Center - IVC quarterly report on venture capital fund raising shows that while Israeli funds invested more in the second quarter than they did in the first quarter, their overall share of local fundraising fell to its lowest level in ten years.
IVC Research Center CEO Koby Simana said, “We are seeing what may be the seeds of recovery in capital raising by Israeli high-tech companies. However, the share of Israeli VC fund activity continues to drop - declining in the second quarter to its lowest level in ten years. In the meanwhile, some of the impetus can be explained by non-Israeli VC funds stepping up. It still remains to be seen if the increase in amounts raised is a one time event or a bona fide change in the trend.”
In the second quarter, 104 Israeli high-tech companies raised $343 million from venture capital funds and other venture investors both local and foreign. The amount was up 47 % from the $234 million raised by 91 companies in the first quarter of 2010, and 23% above the $279 million raised by 122 companies in the second quarter of 2009.
The average high-tech financing round was $3.3 million, compared to $2.57 million in the previous quarter and $2.29 million in the second quarter of 2009.
Sixty-three companies attracted more than $1 million each. Of these, two companies raised more than $20 million each, seven companies raised $10 million to $20 million each and 15 companies raised $5 million to $10 million each.
In the second quarter of 2010, Israeli VC funds invested $91 million in Israeli companies, 17% more than the $78 million in the first quarter, but 19% below the $113 million invested in the corresponding quarter of 2009.
Israeli VC funds accounted for 26% of the total amount invested in Israeli high-tech, compared to 33% in the previous quarter and 40% in the corresponding quarter of 2009. The remainder of capital came from foreign investors as well as from non-VC Israeli investors.
Israeli VC funds invested $12 million in foreign companies during the second quarter.
The life sciences sector continued to lead capital raising both in the second quarter, with $109 million (32%), and in the first half, with $195 million (34%). The Internet sector followed with $70 million (20%)) in the second quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on July 14, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010