ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the May 2015 issue


Summary of Israeli High-Tech Company Capital Raising Q1/2015

IVC and KPMG report:
$994 million raised in Q1/2015 the second highest quarterly amount in a decade Key facts:
Israeli VC fund first investments up 55% from the previous quarter
Internet attracted $343 million highest ever quarterly amount for the sector
Initial revenue stage led all investments for the first time since 2013

* Tel Aviv, Israel, April 28, 2015. In the first quarter of 2015, 166 Israeli high-tech companies raised $994 million the second highest quarterly amount in the last decade and just 10 percent below the record high $1.1 billion invested in 184 companies in the previous quarter. The Q1/2015 amount was 48 percent above the $673 million attracted by 160 companies in the first quarter of 2014. (Chart 1) The average company financing round reached $6 million, equal to the previous quarter's average, and well above $4.2 million of Q1/2014.
* In Q1/2015, 91 VC-backed deals accounted for $832 million 84 percent of total capital invested. The average VC-backed deal peaked at $9.1 million, compared to $7.7 million and $6.1 million in Q4/2014 and Q1/2014, respectively.
* Ofer Sela, partner in KPMG Somekh Chaikin's Technology group commented, "As can be seen from Q1 2015 results, the level of investment activity in Israeli companies is on the rise. This trend is being fueled by higher revenues, improved business results and other key performance indicators. However, the returns from the appreciation in value of VC-backed Israeli companies are mostly enjoyed by foreign investors. The majority of Israeli institutional investors, and through them the Israeli general public, is not participating in venture capital investments.
* Sela believes that "The Israeli government should consider actions that encourage and facilitate Israeli institutional investment at a much higher level than currently. By doing so, global and local momentum could enable Israel's technology industry to expand and become a global technology superpower in absolute numbers, not just relative to its size."



Reprinted from the Israel High-Tech & Investment Report May 2015

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