Venture capital investment in Israeli start-ups totaled $887 million in 2012, 29% less than in 2011, reports Kesselman & Kesselman pwc Israel in its MoneyTree Survey report for the fourth quarter of 2012.
Israeli start-ups raised $277 million in the fourth quarter, 62% more than in the preceding quarter, but 14% less than in the corresponding quarter of 2011. During the fourth quarter, 52 start-ups raised an average of $5.3 million each.
Trends in Israeli high tech have greatly changed in the past two years. Foreign funds with no representative offices in Israel are now making the bulk of investment in Israeli companies, together with private investors and micro-funds.
The MoneyTree survey does not take this trend into account. "Looking forward to 2013, we can assume that we will not see an increase in investment in venture capital-backed companies, and that the switch to alternative investment parties will continue," says pwc Israel partner, High Tech Assurance Practice, Rubi Suliman.
The breakdown of investment shows that the communications equipment industry accounted for 31% of total venture capital investment in Israel in 2012. Investment in Internet companies fell to 20% of total investment in 2012 from 23% in 2011, when the industry attracted the largest share of investment. Investment in semiconductor and life sciences companies also fell.
Published by Globes [online], Israel business news - www.globes-online.com - on February 12, 2013
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