Israeli venture capital-backed start-ups raised $174 million in the second quarter of 2013, 11% less than the $196 million raised in the preceding quarter and 32% less than the $255 million raised in the corresponding quarter of 2012.
The drop in capital raised in the second quarter may not be indicative of a trend, but was because only six companies raised more than $10 million each, compared with nine companies in both the preceding quarter and corresponding quarter, boosting the total amount of capital raised in those quarters.
PwC Israel partner Rubi Suliman, who co-heads its high-tech practice, said, "The stability in first-time investments is a reason for cautious optimism, on the backdrop of a decline in the number of active funds, and it may indicate that those surviving funds (as well as new funds) tend to divert most of their resources to new investments. Therefore, despite the decrease in the amount of dollars invested, we are encouraged by the fact that the number of initial investments is maintained, which is the future of the Israeli high tech."