First quarter investment was down 32%, according to the latest PwC MoneyTree survey.
The MoneyTree report for the first quarter of 2009 by Kesselman & Kesselman - PricewaterhouseCooper Israel states that Israeli venture capital-backed start-ups raised $194 million in the first quarter, 32% less than the $287 million raised in the preceding quarter, and 55% less than the $427 million raised in the corresponding quarter of 2008. Fundraising in the first quarter was the lowest in over five years, since the $192 million raised in the fourth quarter of 2003.
Just 49 Israeli start-ups raised capital in the first quarter, compared with 81 start-ups in the preceding quarter, and 92 start-ups in the corresponding quarter. The average amount raised was $4 million in the first quarter, compared with $3.5 million in the preceding quarter and $4.6 million in the corresponding quarter.
The findings of the Israel MoneyTree report are in line with the report for the US, where the amount raised by start-ups in the first quarter was 47% less than in the preceding quarter, and the number of start-ups raising money fell by 37%.
Published by Globes [online], Israel business news - www.globes-online.com - on May 4, 2009
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