Highlights from the Q3 2010 Israel MoneyTree Report: Investments Still Growing Amid Foggy Conditions

The Q3 2010 MoneyTree report for Israel was published yesterday with somewhat encouraging results: VC investments in Israel continue to grow and some $253 million were invested in VC-backed tech companies in the third quarter, representing a 23% increase compared to the previous quarter and a 42% compared to the same period last year which only saw $178 million invested.

Below are some of the noteworthy highlights from the report:

  • The number of companies funded raised: 68 Israeli high-tech companies raised capital in the third quarter of 2010, compared to 60 in the preceding quarter and 55 in the corresponding quarter of last year.
  • Investment size (average) went up: The average investment per company in the quarter under review was $3.7 million, compared with $3.4 million in the preceding quarter
  • The Internet sector in Israel heated up significantly – In this quarter, 13 companies raised $48 million, compared to 7 companies raising $27 million in the previous quarter and 4 companies raising $24 million in the corresponding quarter last year.
  • Government grants are still a large piece of the funding pie – 20 companies, representing 29% of all companies raising capital in the third quarter of 2010, are supported by the Israel Office of the Chief Scientist. Some $61 million of total investment funds went to these companies.
  • In terms of geography, it’s Israel or US only – 50 companies, representing 74% of companies raising capital in the third quarter of 2010, are incorporated in Israel. These companies raised $207 million or 82% of total investment. The vast majority of the remaining companies are incorporated in the US.
  • It’s hard to raise money unless you’re very early stage or very established: Later stage investments represent 37% of overall amount invested vs. 30% volume in early rounds and 19% in third rounds.

See the full report: Israel MoneyTree™ Report Q3 2010

They say a picture is worth 1000 words… here are some of the pretty graphs for your reference.

The 2% management fee is received even if no investments are made. Does it make sense to see so many funds not investing?

VC Investment in Israel by Sector, stage and round

Eze Vidra
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Eze Vidra

Chief Innovation Officer at Antidote
Eze is the Chief Innovation Officer at Antidote, a startup helping patients search and match to clinical trial, to accelerate medical breakthroughs. Previously, Ezewas a General Partner at Google Ventures Europe. Before GV, Eze founded and led Campus London, Google's first physical hub for startups, and was the Head Google for Entrepreneurs in Europe. He's an experienced product manager and startup mentor. In 2012 Eze founded Techbikers, a non-for profit supporting children education in developing countries.
Eze Vidra
Follow me

Eze Vidra

Eze is the Chief Innovation Officer at Antidote, a startup helping patients search and match to clinical trial, to accelerate medical breakthroughs. Previously, Eze was a General Partner at Google Ventures Europe. Before GV, Eze founded and led Campus London, Google’s first physical hub for startups, and was the Head Google for Entrepreneurs in Europe. He’s an experienced product manager and startup mentor. In 2012 Eze founded Techbikers, a non-for profit supporting children education in developing countries.

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