JVP tops the list of most active funds based on first investments
with nine first investments (compared to two in 2003). Closely
trailing are Vertex with eight first investments (compared to 6 in
2003) and Giza with seven first investments (compared to 5 in 2003).
Next in the ranking are Evergreen and Cedar, with six first
investments each, and Gemini, Star, Israel Seed, Ascend and Apax with
five first investments. Results for the three leading funds - JVP,
Vertex and Giza - included First investments made in companies
operating in their respective managed incubators - JVP Studio,
Technion Entrepreneurial Incubator and ATI.
IVC also ranked the cumulative number of first investments made by
funds since the beginning of 2002. This ranking is led by Giza with a
total of 18 first investments. A close second was Vertex with 17
first investments, followed by Pitango (14), Evergreen (13) and Cedar
(13).
"First time investments made by funds are important in light of the
fact that the average time-to-exit is five to six years. Accordingly,
recent investments will only bear fruit years from now" said Zeev
Holtzman, Chairman of IVC Research Center and Giza Venture Capital.
"Venture capital investments are a marathon: the true results will be
revealed in time". Holtzman added that "due to relatively more
comfortable terms of investment in the past two to three years, VC
funds have begun picking up the pace of new investment. Since more
new funds are planning to get underway during 2005, we project
further increases in first investments over the coming year."
Pitango heads the list of the leading 10 funds ranked by total number
of investments (First and Follow-on) in 2004. Pitango has now made
the most total investments for the third year in a row. Pitango made
36 investments in 2004, compared to 18 in 2003. Next on the list is
JVP with 20 investments, compared to 10 in 2003. Following closely
are Giza, Gemini and Star with 17 investments each, Infinity with 16
and Evergreen with 15. All of these funds exceeded their 2003 numbers.
The leading 10 funds made 54 first investments in the aggregate
(about 30 percent of the total number of deals), compared to 45 first
investments in 2003, an increase of 17 percent. Comparing 2004
activity to 2002 shows an increase of 59 percent in the number of
first investments made by the leading 10 funds. Ayala Chiel, who
carried out the research at IVC, said "the increase in first
investments over the past two years is evidence of the continuing
recovery in Israel's high-tech industry, particularly over last year."
Total investments by the leading 10 funds showed a significant 33
percent increase to 180 in 2004 from 134 in 2003. These figures
include 126 Follow-on deals in 2004, as compared to 89 in 2003, a 42
percent increase.
IVC Research Center has released its compilation of he most active
Israeli VC funds in 2004 The criteria for the rankings were the
number of first investments, the number of total investments made
and by the cumulative number of first investments made in the past
three years.