Updates facts regarding Israeli High-Tech Capital Raising

Israeli start-ups raised record $3.4b in 2014.

In 2014, Israeli high-tech and life sciences capital raising set an all-time record as 688 companies raised $3.4 billion, IVC and KPMG report. This amount was 46% higher than 2013, when 659 companies raised $2.3 billion.

In the fourth quarter of 2014 alone, 184 Israeli high-tech companies raised a massive $1.1 billion – the most raised in one quarter since 1999. The amount was 58% higher than the $701 million raised by 170 companies in the third quarter of 2014, and 39% higher than the $795 million raised by 190 companies in the corresponding quarter of 2013.

The Internet, the life sciences and software were the leading sectors in 2014, attracting 28, 24 and 22% of capital raised, respectively.

In the fourth quarter of 2014, 22 late stage companies continued to lead all investments – as they did throughout 2014 – with $381 million (34%). The hike in capital raised by Israeli high-tech companies directly reflects the continuing increase in the number of large deals.

KPMG Somekh Chaikin’s Technology group partner Ofer Sela said, “During 2014, some 39 companies completed financing rounds exceeding $20 million, positioning these companies to continue their market expansion. We believe that the maturity level of Israel-based companies in 2015 will attract private equity investors, resulting in even higher amounts raised per revenue-growth company.”

He added, “The fact that the number of deals in the $5 million to $20 million range increased consistently throughout the past year shows the ability of Israeli technology companies to attract capital. It has been said by some that you raise money whenever it’s possible. It certainly looks like Israeli entrepreneurs are learning the lesson well, using the opportunity to raise more capital whenever the market allows”

 

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