Shalom Life | July 01, 2014

Israeli High-Tech Companies Raise Record-Breaking $930 Million in 2nd Quarter of 2014

Financial statistics show a 38 percent increase in funds raised by high-tech companies compared to first quarter

By: Maya Yarowsky, NoCamels

Published: July 18th, 2014 in Business » Israel

Israeli high-tech companies are getting increasing air-time in international news organizations and it seems the hype is justified. In the second quarter of 2014, Israeli high-tech firms have raised a record-breaking $930 million, the Israeli High-Tech and Venture Capital Database (IVC) reported.

According to the IVC Research Center, the second quarter financial statistics for 2014 show a 38 percent increase in funds raised by high-tech companies in comparison to the first quarter of this year, with each of the 175 companies that raised money collecting an average of $5.3 million in investments. In addition, the spike in investment marks the impressive growth of nearly 100 percent since the end of 2013, numbers which clearly convey the strong faith placed by international and local investors in Israeli high-tech companies and management.

Israel’s maturing market attracts investment

Ofer Sela, Technology Partner at KPMG tells NoCamels that this quarter’s investments are particularly outstanding as Israel’s stock exchange has only been around for a total 20 years. As Sela explains, “The recent spike in investments is due to the fact that the amount of private, venture capital-backed companies in Israel has hit new heights, and these companies attract a lot of investment from aboard. Israel is definitely on the ‘to-do list’ of a number of big name venture capital firms, hence the excellent results for Israel companies.”

Israeli High Tech Companies Raise Record Breaking $930 Million Over Three Month Period

Chart 1: Israeli High-Tech Capital Raising ($m)

Sela also points out that investment continues to pour in because of the cyclical “feeder” nature of the Israeli high-tech sector that used to encourage fast exit strategies, but today produces more mature, future-driven companies. “In the past, companies were pressured to make exits in very early stages, but since the American stock market became open to foreign companies in 2008, Israeli companies want to stick around longer and go for a big initial public offering (IPO), a financial ‘home run.’”

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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