The Communications sector attracted the highest sums in 2004 capital
raising. 117 Communications companies attracted $430 million, 29
percent of the total amount raised, compared to $332 million (33
percent) in 2003 and $418 million (37 percent) in 2002. The Software
and Life Sciences sectors followed Communications companies, each
with a 22 percent share of the total.
Investments in Life Sciences companies are at a steady 4-year-rise.
Up from 8 percent in 2000, to 22 percent in 2004", said IVC's
Research Director, Efrat Zakai. "The life sciences sector was
particularly strong in Q4, with $130 million raised by 35 companies.
This is the best for this sector in any quarter since IVC began its
survey in 1999." Within Life Sciences, 19 Medical Device companies
attracted $76 million - 58 percent of the amount raised for the
entire sector.
Seed companies were relatively successful in 2004, as 54 Seed
companies attracted $108 million - 8 percent of the total capital
raised. The amount was almost twice the $58 million (6 percent) of
2003. In the fourth quarter, 15 Seed companies attracted $42 million,
accounting for 12 percent of Q4 capital raising.