Venture Capital Financings in Israel since 2008 - April 2013

by Gemma Morris

  • 18 Apr 2013
  • PE

Preqin’s Venture Deals Analyst shows that since 2008 there have been 403 venture capital financings in Israel, with an aggregate value of $2.53bn. The highest number and the largest aggregate value were witnessed in 2008, with 90 deals valued at an aggregate $592mn announced during the year.

The first quarter of 2008 was the most prominent quarter in the given period in regards to both the number and the total value of venture capital financings in Israel with 33 financings valued at an aggregate $234mn taking place in the country. Preqin’s data shows that the largest financing in Israel during the period also occurred during Q1 2008. This was the $100mn financing of mobile telecoms company Modu Ltd. from Gemini Israel Funds and Genesis Partners in March 2008. The telecoms industry made up the largest proportion of financings within 2008 in terms of the total value of venture capital deals, at nearly 28%.

2009 witnessed a drop in the number and aggregate value of deals; 71 deals occurred, valued at nearly $349mn, a 41% decrease in aggregate value on the previous year. There was a shift in industry trend on the previous year; the majority of financings were within the healthcare sector (nearly 28%) and telecoms only accounted for 10% of the aggregate value.

Through 2010 and 2011 the semiconductors and electronics industry became of increased interest, with the largest proportion of the aggregate deal value at 24% and 21% in 2010 and 2011 respectively. The largest deal within the semiconductors and electronics industry in Israel was the $35mn series B financing of Xjet Solar in November 2011 from Landa Ventures LLC and others. The aggregate deal value for 2010 was a slight increase on 2009, at $387mn, and there was a further increase between 2010 and 2011, to $531mn.

There were 79 venture capital financings in Israel in 2012 valued at a total of $547mn. Semiconductors and electronics contributed only 5% of the aggregate deal value, a drop of 16 percentage points on the previous year. Healthcare financings became more prominent, accounting for 30% of the aggregate deal value in 2012, at nearly $164mn, compared to 9% in 2011.

2013 so far has witnessed 23 venture capital financings in Israel totalling $122mn. In comparison to previous trends, the most active industry has been software & related, accounting for 39% of the aggregate deal value so far in 2013.

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