Israeli Technology Companies Raised $1.92 Billion
14 January, 2013
"While investments by Israeli VC funds are shrinking, foreign VCs as well as corporate and private investors are gradually increasing their activity"
Israeli high-tech companies raised $1.92 billion from local and foreign investors in fiscal year 2012. It is a 10% decrease from $2.14 billion raised by 545 companies in 2011. VC-backed deals accounted for $1.37 billion from a total of $1.92 billion raised in 2012 – down 22% from $1.76 billion in 2011.
Ofer Sela, partner in KPMG Somekh Chaikin’s Technology group, commented: “2012 was a record year in terms of the number of companies raising capital over the past decade. Micro-VCs and angel investors succeeded in filling the void left by Israeli VCs in early stage investments. Technology developments in recent years in both cloud-based infrastructure and content delivery platforms have enabled Internet companies to mature and develop their technology with greater capital efficiency than any other sector.”
In 2012, the life sciences sector attracted the largest share of investments. One hundred and thirty four companies attracted $497 million. The amount was 28% above the amount raised by the sector in 2011. Israeli VC fund investments amounted to $516 million in 2012 – 19% below the $638 million invested in 2011.
“Despite a decrease in capital raising, the figures demonstrates the strength of Israel’s high-tech industry,” said Koby Simana, IVC CEO. “In 2012, we saw investors shifting back into early stage and seed investments with a five-year record $146 million raised by 157 seed companies. While investments by Israeli VC funds are shrinking, foreign VCs as well as corporate and private investors are gradually increasing their activity”.
IVC Research Center is Israel’s leading research center providing business leaders with an unmatched wealth of data on Israeli high-tech, venture capital and private equity industries. IVC products and services are used regularly by high-tech companies, venture capital funds, private investors, financial investors and institutions, as well as public entities such as the Office of the Prime Minister, the Central Bureau of Statistics, the Bank of Israel and the Office of the Chief Scientist.
IVC owns and operates the IVC Online Database (www.ivc-online.com) containing over 8,500 Israeli high-tech companies, venture capital funds, investment companies, angels and technology incubators, as well as news updates and lots more.