Israeli Exits Reached $14.48 Billion
4 July, 2019
It includes one mega-deal in which Mellanox Technologies was acquired by Nvidia for $6.9 billion. Average Value versus Amount Invested rose to 3.9 compared with 2.91 in 2018
In the first half of 2019, technology exit activity in Israel reached $14.48 billion in 66 deals, including the mega-deal in which Mellanox Technologies was acquired by Nvidia for $6.9 billion (subject to closing). Excluding Mellanox, total exit value reached $7.58 billion in the first half of 2019. Despite a slight decrease in the number of exits, from 73 exits in H1-2018 to 66 exits in H1-2019, the total value in 2019 increased significantly from the total of $6.49 billion in H1-2018.
According to IVC-Meitar Exit Report, the average exit value in H1 2019 set a five-year record, reaching $116.6 million. Almost double compared with $63 million in 2015 annually. Shira Azran from Meitar Liquornik Geva Leshem Tal Law Firm, said that there is increase in the number of growth companies raising large amounts of capital in recent years.“The increase in the value of exits is consistent with the expansion of the backlog of mature companies.”
As a result, the number of deals between $100 million and $1 billion climbed to a record of 23 deals compared with 18 deals in 2018. Analysis of exit value versus amount invested in H1 2019 shows the average ratio recovered to 3.9 compared with 2.91 in 2018 annually.
According to IVC-Meitar Exit Report, the average exit ratio of non-VC-backed companies increased to 13.65 while the VC-backed exit-ratio average increased to 3.7 compared with the annual benchmark since 2015. On average, the ratio in H1 2019 increased, representing higher efficiency of investments in the industry.