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.
Co Founder and Managing Partner at Remagine Ventures
Eze is managing partner of Remagine Ventures, a seed fund investing in ambitious founders at the intersection of tech, entertainment, gaming and commerce with a spotlight on Israel.
I'm a former general partner at google ventures, head of Google for Entrepreneurs in Europe and founding head of Campus London, Google's first physical hub for startups.
I'm also the founder of Techbikers, a non-profit bringing together the startup ecosystem on cycling challenges in support of Room to Read. Since inception in 2012 we've built 11 schools and 50 libraries in the developing world.
I'm a former general partner at google ventures, head of Google for Entrepreneurs in Europe and founding head of Campus London, Google's first physical hub for startups.
I'm also the founder of Techbikers, a non-profit bringing together the startup ecosystem on cycling challenges in support of Room to Read. Since inception in 2012 we've built 11 schools and 50 libraries in the developing world.
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