PRINT THIS PAGE Israeli high-tech companies raised $387m in venture capital in Q2, up 11 per cent from first quarter14/07/2005. Source: AltAssets. 
 In the second quarter of 2005, a total of 98 Israeli high-tech companies raised $387m from both local and foreign venture investors. The amount represents an 11 per cent increase from the $350m raised by 102 companies in the first quarter and a 14 per cent increase from the $338m raised by 91 companies in the second quarter of 2004, according to the Quarterly Survey conducted by the IVC Research Center with the cooperation of the Israel Venture Association.
The total amount of capital raised in the first half of this year was $737m, up 15 per cent from the same time last year. Zeev Holtzman, chairman of IVC and Giza Venture Capital, commented, 'The 15 per cent increase in capital raised by Israeli high-tech companies in the first half reflects continuousness of the high level of activity in the Israeli high-tech sector. We foresee stability in H2 2005 that will bring us to approximately $1.5bn in capital raised for the full year.'
The average company financing round was $3.9m, an increase of six per cent from the previous quarter and 15 per cent from the second quarter of 2004.
Looking at sectors, the communications and life science sectors dominate other sectors including software. The communications sector led the second quarter and H1 2005 in fundraising: 24 communications companies reached $136m or 35 per cent of the total amount raised in the second quarter, compared with 34 per cent in the previous quarter and 36 per cent in the second quarter of 2004. In H1 2005 communications companies raised $256m, 35 per cent of the capital raised in the period.
The life science sector came second both in Q2 and H1 2005 with about one fourth of the total capital raised.
Efrat Zakai, director of research at IVC, said about the sector analysis, 'The software sector, which raised only $32m in the second quarter, continues to slip from its traditional position as the second most attractive Israeli sector.'
Comparing the stages, mid-stage companies continued to dominate fundraising in Q2 2005, as they have done for the past three years. A total of 45 mid-stage firms raised $197m, or 51 per cent of the capital raised. However, the mid-stage share fell slightly during H1 2005 with 51 per cent of the total, compared with 52 per cent in H1 2004.
A total of 13 seed companies raised $22m, representing six per cent of the total amount raised in the second quarter of this year, compared with $32m (nine per cent) in the first quarter of 2005 and $17m (five per cent) in the second quarter of 2004. Three semiconductor firms accounted for $10m of the investment in seed companies, while two software firms raised $6.8m. During H1 2005, seed companies attracted seven per cent of the total funds, compared with 4.5 per cent in H1 2004.
The survey reviewed capital raised by private Israeli high-tech companies from Israeli venture capital funds and from other investors. It is based on reports from 100 venture investors of which 60 are Israeli management companies and 40 are other, mostly foreign, investment entities.
Copyright © 2005 AltAssets
|
