Bank Hapoalim: Too early to tell whether VC financing will resume in 2002

Expects the U.S. market will have greatest impact on the trend
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"Investing in startups and VC funds, trendy though it may have been in 2000, has lost its charm for investors, after the vast write offs holding companies made in the course of 2001," said a VC sector forecast published by the securities research department of Bank Hapoalim.

Analysts in the research department said the trend for such investments in 2002 will be dictated by global market trends, especially those in the U.S. "As long as global markets allow, a few private portfolio companies, those that survive the crisis, will be able to issue their stock on the market," said the report.

"Assuming that happens, companies will resume their investments in VC funds, though at this point it is hard to predict this trend will begin as early as 2002."