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.