IVC Research: Start-up investment hits 13-year highOct. 15, 2013
162 Israeli start-ups raised $660 million from local and foreign investors in the third quarter of 2013, the highest quarterly amount since 2000, IVC announced today. Investment was up 34% from the $493 million raised in the preceding quarter and $35% from the $488 million raised in the corresponding quarter of 2012. Investment in start-ups rose 12% to $1.63 billion, raised by 474 companies, in January-September from the $1.45 billion raised by 413 companies in the corresponding period last year.
During the third quarter, five companies each raised more than $20 million, accounting for 25% of the total amount, and nine companies each raised $10-20 million each. The average financing round rose to $4.07 million in the third quarter from $3.45 million in the preceding quarter.
"There has been a continuing rise in the number of seed and first round financing transactions in recent years, resulting in a dramatic increase in the overall number of VC-backed high-tech companies in Israel. We see this trend continuing, leading to record number of deals in 2013 at both stages," said KPMG Somekh Chaikin's Technology Group partner Ofer Sela.
Israeli venture capital funds invested $151 million in start-ups in the third quarter, 23% of the total, the lowest proportion in ten years. Although Israeli funds' investment rose from $130 million in the corresponding quarter, their proportion of total investment fell from 27%.
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