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Israeli VC Industry Outlook 200604/04/2006. Source: Israel Venture Capital Journal (IVCJ). Zeev Holtzman
 Zeev Holtzman of the IVC Research Center projects that those major Israeli funds that have not been in the market to raise new capital for funds will start the process in 2006. Walden, Cedar and several others that have held off until now fall into this category. But not all funds that are currently in the market or that will soon join the search for capital will be able to achieve their targets, and many will have to settle for smaller than hoped for funds.
The reason is that many of the investors interested in Israel, including first-time Israel investors, made their commitments in 2004 and 2005 and will not be adding significantly to them. One offsetting factor is that many of the top tier US funds have fully met their capital raising targets. Therefore, those institutional investors seeking alternative markets may look to Israel, thus producing a positive effect on capital raising. The strength of this development is still to be determined.
It is likely that new capital raised by funds in 2006 will be in the area of $500m to $600m, which compares to just a little over the $1.0bn that is expected to be raised by year-end 2005 and the $734m raised in 2004.
Click here to download the full article (pdf 73.4kb) You need Adobe Acrobat to read this document. If you do not have it, you can download it free from www.adobe.com/products/acrobat/readstep.html The IVC Research Centre is Israel's leading research centre specialising in analysis and monitoring of Israel's high-tech and venture capital industries. IVC's publications are used by major financial entities and government organizations in Israel and abroad. A comprehensive quarterly report based on survey results is available to IVC clients. For more details about VCs & High-Tech industry in Israel, please visit our website www.ivc-online.com or contact Koby Simana Tel: 972-3-640-2306. koby@ivc-online.com
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