News Column

MoneyTree: Q2 VC investment up 34%

August 11, 2014

By Gali Weinreb, Globes, Tel Aviv, Israel

Aug. 11--According to the PricewaterhouseCoopers MoneyTree report, investments in Israeli venture capital backed companies reached $233 million in the second quarter of 2014, up 34% from the corresponding quarter of the previous year. From the beginning of the year, the companies raised $465 million, up 25% from the corresponding quarter of 2013.

This figure positions the current half well at the mid-point, compared with the first halves of previous years. In the last two record years, 2008 and 2011, more than $700 million were raised in the first half. The current half is among the highest "regular" years, in which investments at the half range between $350 million and $420 million.

The number of companies that raised venture capital in the current quarter dropped from 43 in the corresponding quarter, to 37 this year, however, the average investment in each company was $6.3 million, compared with $4 million in the corresponding quarter. In the current quarter, as in the corresponding quarter of 2013, there were only six deals over $10 million.

Of the companies that received the investments, 30% are companies that received or are receiving support from the Office of the Chief Scientist. The share of first investments by venture capital funds in companies (which are usually early-stage investments) was low in the current quarter, relative to previous quarters in previous years.

The second quarter of 2014 was particularly successful for the life sciences. The software sector also saw a significant increase in investments, however, Internet, the star of recent years, saw a decline in investments. Cleantech and semiconductors also had a relatively weak quarter. Software received 49% of the investments, and life sciences received 21%.


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Source: Globes (Tel Aviv)

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