Shalom Life | May 01, 2015

Israeli Startups Raise Nearly $1 Billion in 1st Quarter of 2015

166 Israeli startup companies raised a whopping $994 million from venture capital firms, the second-best result in the last decade

By: NoCamels Team

Published: April 28th, 2015 in Business » Israel

Photo: Tel Aviv


According to a report released today by IVC Research Center, 166 Israeli startup companies raised a whopping $994 million from venture capital firms in the first quarter of 2015, the second-best result in the last decade. Even more telling, this figure was 48 percent higher than the $673 million raised by 160 companies in the first quarter of 2014.

However, it is still 10 percent below the record high $1.1 billion invested in 184 companies in the fourth quarter of 2014.

The average company financing round averaged at $6 million, equal to the previous quarter’s average, but well above the $4.2 million average raised in the first quarter of 2014. The IVC report also shows that in the first quarter of 2015, 91 VC-backed deals accounted for $832 million – 84 percent of the total capital invested. The average VC-backed deal peaked at $9.1 million, compared to $7.7 million and $6.1 million in the fourth and first quarter of last year, respectively.

Q1 capital raising

And the figures show foreign investment is still leading, proving how high up on international investors’ lists Israeli startups have become. Indeed, the vast majority of investment in Israeli startups is foreign: Israeli venture capital firms invested only $180 million in local startups and high-tech companies, or 18 percent of all investments, in the first quarter this year.

Best-ever quarter for Israeli internet startups

The research also shows Internet companies are still leading the pack in terms of deal flow: The sector experienced its best quarter ever with $343 million raised by 44 companies, a 35 percent slice of the funding pie. The life sciences and software sectors followed, accounting for 22 percent and 19 percent of total capital raised, respectively.

“The increase in high-tech capital raising is not coincidental, but directly reflects the trend toward growth company investments and higher valuations of mid- and late-stage companies,” Koby Simana, CEO of IVC Research Center, said in a statement.

This article was first published on NoCamels - Israeli Innovation News and was re-posted with permission. To continue reading this article on the site, click here.

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