Israeli tech companies raised more in recent months than at any point since 2001, according to the recent quarterly report by the
In the second quarter of 2008, 115 Israeli tech companies raised $465 million from venture investors, both local and foreign. The amount was up 7% from the second quarter of 2007, but was 25% below the unusually high first quarter of the year.
In the first half of 2008, Israeli tech companies raised $1.08 billion in capital, up 28% compared to the same period in 2007.
The average financing round the last three months was just over $4 million, compared to $3.7 million in the second quarter of 2007, and $4.6 million in the first quarter of 2008.
A total of 78 companies raised more than $1 million in their rounds of financing. Of these, 17 companies raised $5 million to $10 million each, 13 companies raised $10 million to $20 million each, and three companies raised more than $20 million each.
The communications sector led capital raising so far in 2008, as it accounted for more than one-fourth of the investment dollars. Software companies have raised 22%, followed by life sciences with 17% and the Internet with 11% of total capital raised.
Seed companies attracted 5% of capital raised in the first half of 2008, compared with 12% in the same period of 2007 and 8% in the first half of 2006. —Constance Loizos