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Israeli investments by the top ten funds showed 33 per cent increase in 2004

Israeli-VC Pitango has retained its position as the country's most active investor for the third consecutive year, according to new figures from the IVC Research Center. Its 36 investments contributed to a 33 per cent increase in the number of investments by the country's ten largest funds, signalling an ongoing recovery in the Israeli venture sector.

The top ten funds made a total of 180 investments in 2004, up 33 per cent from 134 in 2003. Pitango led the field followed by JVP with 20 investments, Giza, Gemini and Star with 17 investments each, Infinity with 16 and Evergreen with 15 investments.

Based on first investments JVP tops the list of most active funds with nine first investments. Closely on its heels are Vertex with eight first investments; Giza with seven first investments; Evergreen and Cedar with six first investments each; and Gemini, Star, Israel Seed, Ascend and Apax with five first investments each.

Zeev Holtzman, chairman of IVC Research Center and Giza Venture Capital explained, 'First time investments made by funds are important in light of the fact that the average time-to-exit is five to six years. Accordingly, recent investments will only bear fruit years from now.'

'Due to relatively more comfortable terms of investment in the past two to three years, VC funds have begun picking up the pace of new investment. Since more new funds are planning to get underway during 2005, we project further increases in first investments over the coming year, Holtzman added.

The IVC Research Center report relates to investments in Israeli and Israel-related companies made by funds through management companies that had a minimum of $30m under management.

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