60% of top Israeli venture capital managers do not expect mass layoffs in high tech in the next six months, according to the VC Indicator Survey for the first quarter of 2012 by Deloitte Brightman Almagor Zohar. 31% of the managers do not expect any layoffs at all in the next six months.
The venture capital managers expect exits of at least $25 million each within the next six months. 73% of the respondents expect at least six exits of this size, and the same proportion of respondents does not believe that there will any acquisitions greater than $1 billion.
In view of the reduction in Israeli venture capital, 17% of the respondents believe that the number of start-ups will decline in the next six months.
The venture capitalists believe that 2012 will be better than expected for Israeli start-ups, but they do not see a dramatic improvement in financing rounds. 65% of the respondents believe that the economic climate will stay unchanged over the next six months, and 35% expect it to improve.
Israel's natural gas exploration fever has spread to venture capital. 41% of the venture capital managers agree with the assumption that the gas discoveries will influence technological development and the establishment of start-ups in the industry.
Deloitte Israel Technology, Media & Telecommunications manager Tal Chen said, "The gas discoveries could be a fertile field for technological growth. To encourage the development of the energy industry, it is necessary to increase the incentives offered to start-ups focusing on this area."
Asked about financing alternatives for start-ups, 39% of the respondents believe that accelerator programs are a good alternative, and 31% believe that foreign private investors will replace venture capital.
Published by Globes [online], Israel business news - www.globes-online.com - on April 2, 2012
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