Israeli hi-tech companies' financing sets new record in 2017

JERUSALEM, Jan. 17 (Xinhua) -- Israeli high-tech companies raised 5.24 billion U.S. dollars in 2017, a new record high and an increase of 9 percent compared with 4.83 billion dollars attracted in 2016, a report said Wednesday.

The survey report jointly issued by IVC Research Center and Zysman Aharoni Gayer & Co. (ZAG S&W) indicated that the total capital raised by Israeli high-tech companies has been growing since 2013.

The increase was caused by four large deals of over 100 million dollars each, capturing 12 percent of the total amount raised.

The average financing round has grown from 3.6 million dollars in 2013 to an average of 8.5 million dollars in 2017 with a total of 620 transaction deals.

Israeli VC (venture capital) funds invested 814 million dollars in 2017, the largest sum since 2013, and an increase of 25 percent year on year, said the report.

According to IVC data, currently there are about 3 billion dollars in capital available for investments (or "dry powder"), as most Israeli VC funds are entering their fourth vintage year, explained Marianna Shapira, research director at IVC Research Center.

Quite a few newly raised VCs are ready to enlarge their portfolio at this period, said Shapira. "We expect to see young technology companies enjoying this situation in the course of 2018."

In 2017, companies in growth stages, referring to mid and late stages, attracted the largest part of capital, raising 3.9 billion dollars, compared with 3.4 billion dollars in 2016.

Mid-stage companies increased their share to 2.1 billion dollars in 2017, compared with 1.8 billion dollars in 2016. Seed and early stage companies raised 1.36 billion dollars in total throughout 2017, compared with 1.43 billion dollars attracted in the previous year.

In 2017, the capital raising volume increased, continuing the consistent growth trend of the past five years.

The high-tech industry matures and settles as the source of innovation, attracting investors and entrepreneurs from all over the world, said Shmulik Zysman, managing partner leading the high-tech sector at ZAG S&W.

Leading all sectors, software companies raised 1.9 billion dollars with 208 deals in 2017, similar to 2016, according to the report.

Life sciences companies raised 1.2 billion dollars, 41 percent more compared with in 2016. Semiconductor companies raised 348 million dollars compared with just 124 million dollars in 2016.

Communication companies showed a decline in the number of deals and total capital raised, 569 million dollars in 72 deals, compared with the exceptional 872 million dollars in 106 deals in 2016. Enditem