Israeli start-ups raised $11.1b VC in past decade

PricewaterhouseCooper Israel MoneyTree Report 2001-2010: start-ups in Israel raised $884 million in 2010.

Israeli start-ups raised $11.1 billion in venture capital over the past decade according to the Israel MoneyTree Report for 2001-2010 by PricewaterhouseCooper Israel. Over the same period PwC reported that US start-ups raised $247 billion.

PwC Israel reported that Israeli start-ups raised $884 million in venture capital in 2010, up 20% from 2009 but down 37% from 2008.

Per capita venture capital investment in Israel is among the highest in the world. PwC said, "The report highlights the contribution of the money flowing into Israel from the US and domestic venture capital industry and reflects the strength of Israeli high tech.

The report found a sharp fall in the number of funds active in Israel over the past decade while pointing out that the proportion of investments by foreign venture capital funds has grown. The figures also show that growing investment by Israeli venture capital funds in foreign companies over the decade. PwC Israel said that this is a worrying trend because it showed that Israeli funds cannot find enough investment opportunities in Israel.

Investments in start-ups fell over the decade compared with investments in later stage high tech companies. According to PwC Israel the desired weight of investment to ensure the growth of new companies is 20%-30% of a fund's total devoted to first-time investments.

PwC Israel high-tech practice partner Robi Suliman said, "The past decade was a crazy rollercoaster ride for the various high tech players. From the burst bubble at the beginning to credit crisis towards the end, Israeli high tech know-how had breathtaking ups and downs."

Published by Globes, Israel business news - www.globes-online.com - on January 9, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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