After five quarters of increasing first investments, the IVC Research Center in cooperation with KPMG Somekh Chaikin Israel venture capital survey for the second quarter of 2012 states that first investments by Israeli venture capital funds accounted for 18% of their total investments, the lowest proportion in a decade. The proportion of first investments fell from 48% in the preceding quarter and 26% in the corresponding quarter of 2011.
128 Israeli high-tech companies raised $453 million in venture capital in the first quarter of 2012, 20% less than the $569 million raised by 145 companies in the corresponding quarter of 2011, and 6% less than the $483 million raised by 142 companies in the preceding quarter.
Israeli venture capital funds invested $106 million in companies, 34% less than the amount invested in the corresponding quarter, and 23% of total investment in Israeli companies, compared with 28% in the corresponding quarter. Foreign investors and other Israeli investors provided the balance of investment.
IVC Research Center CEO Koby Simana said, "The percentage of high-tech investment from Israeli venture capital firms is continuing to decline as capital available for new investments is shrinking. Despite the continuing decline in their share, Israeli venture capital funds are still at the core of venture capital activity in Israel. In light of their ongoing difficulties in raising new funds, we expect a further decline in venture capital high-tech investments throughout this year."
Published by Globes [online], Israel business news - www.globes-online.com - on July 16, 2012
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