Deal activity rises in Israel

Israeli tech companies raised $414 million from 108 local and foreign venture firms in the third quarter of 2007, according to the IVC Research Center. The deal activity brings the total raised by Israeli tech companies raised to nearly $1.3 billion, which is 10% above the $1.1 billion raised in the same nine-month span of 2006.

The average company financing round was $3.8 million in the third quarter, compared to $4.4 million in the same quarter of 2006 and $3.69 million in the second quarter of this year.

In Q3, 73 companies attracted more than $1 million each. Of these, 13 companies raised between $5 million and $10 million each, 11 companies raised between $10 million and $20 million each, and three companies raised more than $20 million each.

“Third quarter figures indicate 2007 may set a five-year record with tech investments reaching $1.7 billion,” said Zeev Holtzman, chairman of IVC Research Center and Giza Venture Capital. “To complete the positive picture, we hope that the intensive investment activity will be expressed in substantial exits of over $500 million in the upcoming year that will enable the Israeli VC industry to show significant returns on their investments.”