Israeli high tech investments up

Israeli investment was up in Q2 2005 with 98 Israeli high tech companies raising $387m from both local and foreign venture investors, according to the IVC Research Center, in cooperation with the Israel Venture Association (IVA.) The amount was up 11% from the $350m raised by 102 companies in Q1 and was 14% higher than the $338m raised by 91 companies in Q2 2004. In the first half of 2005, capital raised was $737m, up 15% from the same period the previous year.

In Q2, the average company financing round was $3.9m, an increase of 6% on Q1 and 15% on Q2 2004. Sixty-two companies attracted more than $1m in Q2. Of these, 11 companies raised more than $10m each, and 10 companies raised between $5m and $10m each.

The communications sector led Q2 and first half in fund raising. Twenty-four communications companies attracted $136m, 35% of the total amount raised in the quarter, compared with 34% in the previous quarter and 36% in Q2 2004. In the first half of 2005, communications companies raised $256m, 35% of the total capital raised in the period. Life science companies accounted for around one-fourth of total capital raised.