Israeli start-ups raised $255 million from venture capital funds in the second quarter of 2012, 55% more than in the preceding quarter, but 30% less than in the corresponding quarter of 2011, according to the quarterly MoneyTree Survey by Kesselman & Kesselman pwc Israel. pwc's survey covered 38 venture capital funds operating in Israel.
First and second round investments in Israeli companies totaled $91 million, 36% of total investment, in the second quarter, more than in the preceding quarter, but 40% less than in the corresponding quarter.
The MoneyTree survey does not reflect the pessimism of the IVC survey from a few weeks ago, because pwc only examines activity by Israeli venture capital funds, resulting in a slightly different perspective. However, pwc Israel partner, High Tech Assurance Practice, Rubi Suliman, has the same long-term message as his counterparts at IVC, saying, "In the absence of the raising of new funds, we are unlikely to see a significant recovery in the second half of 2012."
Internet start-ups attracted the most investment in the second quarter. They were followed by semiconductor start-ups, which raised $52 million in the second quarter, compared with $2 million in the preceding quarter and $54 million in the second quarter. Internet start-ups accounted for a third of total investment in the second quarter and semiconductor start-ups accounted for a fifth. The life sciences and communications equipment sectors both saw a sharp drop in investment.
Published by Globes [online], Israel business news - www.globes-online.com - on August 7, 2012
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