There were only 55 Israeli high-tech exits totaling $3.5 billion in 2016 according to the PwC accounting firm.
There were 55 exits in Israeli high tech from IPOs and mergers and acquisitions totaling $3.5 billion in 2016, down 67%, compared with $10.69 billion in 2015. The number of deals also fell from 70 in 2014 and 2015, according to a report of exits by the PwC Israel accounting and consultancy firm.
Record high-tech funds raised in 2016
PwC Israel high-tech sector leader Rubi Suliman stated, "Since the potential pool of investors has remained more or less unchanged, it is natural for there to be a something of a lull also in Israel among certain investors, following the wave of acquisitions in recent years, for the purpose of utilizing and maximizing the technologies and companies already acquired, and for examining and investing in the new technologies."
Suliman added, "There is a great deal of money available for investments in Israeli high tech. The Israeli and foreign venture capital funds, strategic investors, angels, and other investment concerns are present in the market with more substantial than ever investment capabilities. The high-tech companies engaged in building long-term value will certainly again encounter a tsunami of acquisitions after a while."
According to the report, exit deals averaged $64 million in 2016, compared with $153 million in 2015.
On the other hand, 2016 was a strong year for Israeli technology companies in raising capital: $4 billion was raised in the first three quarters of the year. $200 million was raised in December and $620 million in the fourth quarter, while $4.3 billion was raised in 2015.