The Israeli VC share of the total amount invested in Israeli high-tech was 38 percent, with the remainder of capital coming from foreign investors as well as non-VC Israeli investors. "Non-Israeli-VC investors are showing more interest and involvement in Israel," said Guy Holtzman, general manager of IVC Research Center. "
Capital Raised by Stage
Capital Raised by Sector
In the second quarter of 2006, 109 Israeli high-tech companies raised $404 million from venture investors - both local and foreign. The amount was up 12 percent from $360 million raised by 101 companies in the previous quarter, and four percent ahead of the $387 million raised by 98 companies in the second quarter of 2005. In the first half of 2006, capital raised was $764 million, up four percent from H1/2005 levels.
Israeli VC Investment Activity
In the second quarter of 2006, Israeli VCs invested $154 million in Israeli companies, a decrease of 13 percent from the previous quarter and six percent below Q2 2005 levels of $163 million.
In the second quarter of 2006, 10 Seed companies drew $14 million, only three percent of the capital raised. This compares with 14 percent in the previous quarter and six percent in the second quarter of 2005. Investments."
A total of $64 million, or eight percent of total capital raised, was raised by seed companies in H1/2006, up from the seven percent of H1/2005.
The Internet sector particularly stood out in the second quarter of 2006, raising $36 million, nine percent of the capital raised. This figure was relatively high compared to the quarterly average of $11 million (3.6 percent of total capital raised) over the past four years, though still a long way from the 48 percent peak of Q1/2000. In the first half of 2006, the Internet sector attracted eight percent of capital raised.