Israeli High-Tech Raised $1.52 Billion in Q1-2018
7 May, 2018
Early stage companies are back in the saddle with $451 million funds, a leap of 60% compared with the 2017 quarterly average. "We link the foreign investments increase to regulatory changes in China"
The first quarter of 2018 continues the positive trends in Israeli high-tech industry: $1.52 billion was raised in 181 deals. Both the number and the amount of deals grew compared to the previous quarter ($1.46 billion, 161 deals) and to the first quarter of 2017 ($1.06 billion, 155 deals). VC-backed deals caught 72% of the total amount raised and 61% of the total number of deals.
Three deals of over $100 million each, accounted for 23% of total capital raised in Q1. Shmulik Zysman, Attorney at Law, Managing Partner leading the high-tech sector at ZAG S&W Zysman, Aharoni, Gayer & Co, said: “Israeli high-tech opens 2018 with a strong momentum with foreign VC fund’s investments almost doubled compared to Q1 2018. We link the foreign investments increase to regulatory changes in China, which defined clear rules and recommendation for technology investments.”
Software, Cyber and IoT
Capital raising by companies in R&D stage totaled $451 million, a leap of 60% in capital volume compared with the 2017 quarterly average. This indicates the change of the role in the A financing round in Israeli high-tech industry. After two feeble years for seed stage companies, the number of deals in Q1/2018, grew to 57 deals in comparison to 42 deals in Q1 2017.
Software companies continued to attract more capital and raised $754 million. IoT (Internet of Things) number of deals grew to 29 deals raising $265 million —the highest in the last five years. Cyber security companies attracted 34 deals, almost double the number of deals (18) in Q4/2017. Those investments were made mostly in the A and seed financing rounds, and might imply that a new cyber wave is on the raise.
The Survey was made by IVC Research Center and is based on reports from 448 investors of which 59 were Israeli VC management companies and 389 were other entities.