Israeli Technology Companies Raised $1.3 Billion in Q2
19 July, 2017
The first half of 2017 was the second highest in terms of capital raising, as 312 Israeli high-tech companies attracted $2.3 billion
In the second quarter of 2017, Israeli high-tech capital raising reached $1.26 billion, attracted by 157 companies. It was the second highest quarterly amount in the past five years, following Q2/2016’s $1.7 billion. According to a report made by IVC Research Center and ZAG-S&W firm, The average financing round in the second quarter grew significantly to $8 million, compared toe $6.8 million average in the first quarter.
The first half of 2017 was the second highest in terms of capital raising, as 312 Israeli high-tech companies attracted $2.3 billion. According to IVC-ZAG’s report, during this period the industry saw a 12% increase in capital raised in VC-backed deals , compared to the $919 million three-year average. “Our data indicate that local investments by venture capital funds have increased in the second quarter, following a series of declines in previous quarters,” says Koby Simana, CEO of IVC Research Center.
“The number of large deals, of over $20 million each, increased significantly, leading to a rise in the total capital raised in large rounds. We also see that the average small financing rounds (under $5 million) was up substantially in the second quarter. Mid-range deals saw a minor increase both in terms of deal number and the average financing round.” Software was the leading sector with $482 million (38% of total) in Q2/2017, as in the past four quarters. Life sciences was second, with $387 million.
According to Adv. Shmulik Zysman, managing partner at Zysman Aharoni Gayer & Co. (ZAG/S&W): “The Israeli high-tech industry continues to grow and receive a vote of confidence from foreign investors and VC funds. At the end of the day – despite the high risk they embody, there is no way to ensure the strength and future of the Israeli economy and the high-tech industry other than early stage investments, which offer exceptional returns to those willing to take risks.”
The full IVC-ZAG survey for 2016 appears in IVC High-Tech Yearbook 2017 published in May 2017.