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Israeli VCs raises $473m in capital in 200613/06/2007. Source: IVC Research Center .
 The IVC Research Center reports that Israeil VCs have $1.5bn in capital available for investment and are projected to raise $700m in 2007.
The following are findings from the Annual Survey of Israeli Venture Capital Fund Raising, conducted by the IVC Research Center, which for more than ten years has been at the forefront of venture capital and private equity research in Israel. Survey data for 2006 will be published in detail in the IVC 2007 Yearbook.
In 2006, Israeli venture capital funds raised a total of $473 million by vintage year*, a 67 percent decline from the $1.46 billion raised in 2005. The drop was anticipated since most large Israeli VC funds completed their efforts in the previous two years, having raised a total of $2.52 billion in the 2004-2006 period.
Funds that raised capital in 2006 included Evergreen V (first closing, $135 million), Magnum II ($105 million) and Greylock Partners's first Israel-focused fund ($150 million), which followed the firm's relaunching of its local office. Seven other venture capital funds announced first closings during 2006 for a total of $83 million. These included Infinity III, Peregrine II, Evolution Fund I (focused on bootstrapped startups), two new cleantech funds - H2Tech and Terra - and a new Web 2.0 fund, Jerusalem Capital.
According to IVC estimates, $1.5 billion in capital is currently available for investment by Israeli VCs, of which $0.9 billion is intended for First investments in high-tech companies. The remainder is reserved for Follow-on investments. An additional $700 million is expected to be raised in 2007 by Israeli VCs for investment in Israeli high technology.
Zeev Holtzman, Chairman of IVC Research Center and Giza Venture Capital, said, "It is expected that the next capital raising cycle of the leading Israeli VC funds - the fifth cycle since 1992 - will start later this year and will reach its peak in 2008. It is expected too that all the remaining VC funds - those that last raised capital in 2000 and 2001 - will also try to raise follow-on funds. Therefore, capital raised in vintage 2007 is most likely to be higher than in 2006. Currently, capital available for investment by Israeli funds equals two years investment, a markedly shorter period than in the US, indicating that there is no oversupply of capital in the Israeli market."
Top funds capital raising 1992-2006
Between 1992 and 2006, Israeli venture capital funds raised approximately $11.07 billion that was exclusively allocated to investments in Israeli technology companies. Of this amount, approximately $6.82 billion (62 percent) was raised between 2000 and 2006. The top 20 Israeli venture capital funds shown in the table below accounted for $7.68 billion of capital raised between 1992 and 2006.
IVC Research Centre is Israel's leading research center providing business leaders with an unmatched wealth of data on Israeli venture capital, private equity and high-tech industries. IVC products and services are used regularly by venture capital funds, private investors, high-tech companies, 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.
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