Highlights from the MoneyTree Israel Report for Q1 2011

Israeli VC investments are picking up pace and have reached a record level since the Lehman Brothers collapse in 2008. According to the MoneyTree Report produced by PWC Israel, Venture-backed companies raised $342 million in the first quarter of 2011, a dramatic 102% increase from the  $170 million raised in the equivalent period in the previous year.

VC Cafe brings you a the highlights of the report in bitesize nuggets:

  • The average investment per company in the quarter under review was $4.1 million, from $3.5 million in the preceding quarter and $2.4 million in the corresponding quarter of last year.
  • The Internet sector saw a massive increase in deals, with an investment $75 million in Q1 2011, the highest level ever reported
  • Deals are getting bigger. This quarter, $179 million were invested in 9 deals of over $10M, compared with $120.5 million in 6 deals the previous year
  • A staggering 43% of Israeli VC funds made no investment in Q1 2011.  Slight improvement from the 46% of “no action” VC funds in the last two quarters.

Question: How can you charge 2% management fees if you don't make any investments?

  • Annual investment levels of Venture Capital Funds (in millions of dollars) are on the way UP

Israeli VC investments levels

  • Average investment per company (in millions of dollars) is recovering, which means healthier valuations for Israeli startups
Healthier valuations for Israeli startups

Average investment per company (in millions of dollars)

  • Don’t hate on government grants – Thirty six companies, representing 43% of all companies raising VC capital in the first quarter of 2011, are supported by the Office of the Israel Chief Scientist. Some $146 million of total investment funds went to these companies.
  • A total of 58 companies, representing 70% of companies raising VC capital in the first quarter of 2011, are registered in Israel. These companies raised $186 million or 54% of total investment. The remaining companies are mostly incorporated in the US.
  • Seed/Startup stage investments have declined, and are still a challenging investment gap to solve. 8 startups raised $15 million during the first quarter of 2011, representing 4% of total investments this quarter. This compares to 9 companies raising $8.5 million last quarter and 12 companies raising $16.7 million in the corresponding quarter of last year.

To download a copy of the MoneyTree report, use this link.

Eze Vidra
Follow me

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

Latest posts by Eze Vidra (see all)

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.