Local high-tech companies raised USD 350 million during the 2005 first quarter from foreign and Israeli venture capital investors, marking an 8 percent increase from the same quarter last year, a joint IVC Research Center and
Israel Venture Association study shows.
However, the figure marks a 4 percent drop from the USD 366 million that 102 high-tech companies raised during the final quarter in 2004.
According to the study, the average sum raised per company stood at USD 3.4 million, a 6 percent increase from the previous quarter and a significant 18 percent rise compared with the average amount raised during the same quarter in 2004.
IVC Research Director Efrat Zachay said the data indicate stability in the amount of the capital raised, and that since 2004's first quarter, the average sum raised by high-tech companies per quarter has been in excess of USD 350 million.
Local VC's going overseas, as well
“We estimate this trend would continue and that USD 1.5 billion in annual investments is expected this year as well,” she said.
High-tech communications companies led the way, as 31 communications companies raised USD 120 million, some 34 percent of the entire capital raised.
The software sector raised some USD 105 million, or 30 percent of the capital raised, and life sciences companies raised USD 87 million.
Moreover, the activity of Israeli venture capital funds continued abroad, as local funds have invested USD 37 million in 11 foreign companies so far this year, compared with USD 24 million they had invested during last year's final quarter.
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