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Israeli High-Tech Company Capital Raising – First Half of 2010

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Monday, August 2nd, 2010

The following are the findings of the IVC Quarterly Survey conducted by the IVC Research Center, which for more than 14 years has been at the forefront of high-tech, venture capital and private equity research in Israel. This Survey reviews capital raised by private Israeli high-tech companies from Israeli venture capital funds, foreign and other investors. The Survey is based on reports from 99 investors of which 47 are Israeli management companies and 52 are other – including foreign – investment entities.

In the second quarter of 2010, 104 Israeli high-tech companies raised $343 million from venture capital funds and other venture investors – both local and foreign. The amount was up 47 percent from the $234 million raised by 91 companies in the first quarter of 2010, and 23 percent above the $279 million raised by 122 companies in the second quarter of 2009. In the first half of 2010, capital raised by 195 Israeli high-tech companies was $577 million, a 6 percent increase from H1 2009 levels of $544 million.

Three private Israeli high-tech companies raised exceptionally high amounts from private equity investors in the first half of 2010, and are not included in this Survey. Better Place raised $350 million, BrightSource attracted $150 million and RF Dynamics obtained $50 million in funding.

In Q2 of 2010 the average high-tech financing round was $3.3 million, compared to $2.57 million in the previous quarter and $2.29 million in the second quarter of 2009. Sixty-three companies attracted more than $1 million each. Of these, two companies raised more than $20 million each, seven companies raised $10 million to $20 million each and 15 companies raised $5 million to $10 million each.

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