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Israeli venture capital picks up in Q3

$438 million is raised by Israeli technology firms - the highest level in three years. The amount raised in the first three quarters of 2004 reflects an increase of 43 percent over the same period in 2003.

According to figures released today by the IVC Research Center, the positive trend in the Israeli venture market has continued through to 2004's third quarter.

113 Israeli high-tech companies raised $438 million from venture investors. The amount was up 30 percent from the $338 million raised by 91 companies in the previous quarter and was 55 percent higher than the $283 million raised by 103 companies in the third quarter of 2003.

"Third quarter capital raising was at its highest level in three years," said Efrat Zakai, Director of Research at IVC. "In fact, in Q3 Israeli high-tech companies raised more than twice the amount raised in Q4/2002, which was the lowest quarter recorded in the past three years. The current figures reflect the continuous recovery of the Israeli high-tech sector, as well as an increase in levels of capital invested by both Israeli and foreign investors".

The average company financing round was $3.87 million, compared with $3.71 million in the previous quarter and $2.74 million in the third quarter of 2003.

In the third quarter, Israeli VCs invested $194 million in Israeli companies, compared with $156 million in the previous quarter and $129 million in Q3 2003. The Israeli VC share of the total amount invested in Israeli high-tech companies was 44 percent, slightly below the 46 percent share of the previous quarter.

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