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MoneyTree: VC investments in Israel in 2001 half 2000 total

Fewer companies received any funding; average investment per company increased

VC investments in Israel in 2001 totaled $1.6 billion, half their total in 2000, reveals a MoneyTree survey published today by Kesselman & Kesselman. More investments have been made in hi-tech companies backed by Israeli VC firms in Q4 2001 than in the previous quarter.

According to Yossi Fellus, head of the hi-tech division of Kesselman and Kesselman, VC investing in Israel posted a climb for the first time in four quarters. Q4 investments rose 16% in Q4 from the previous quarter.

However, the number of companies that obtained financing in the fourth quarter, dropped to 106 from 117 in the previous quarter. An average investment in a single company in Q3 was $2.8 million, and it rose 29% in the fourth quarter to $3.6 million.

The survey also reveals 36% of the VC funds that took part in the survey did not make a single investment. In the comparable period that figure was a mere 17%.

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The MoneyTree survey is a quarterly survey done by Kesselman & Kesselman (PricewaterhouseCoopers Israel), at the same time PWC conducts it in Europe and the U.S.

76 VC funds took part in the Q4 2001 survey.