Capital raised by Israeli venture capital funds in 2004 was $724
million, primarily reflecting $300 million raised by Pitango for a
fourth fund, $200 million raised by Gemini for a fourth fund and Giza
Venture Capital's first closing of $120 million for its fourth fund.
$1 billion available for investments
Zeev Holtzman, Chairman of IVC Research Center and Giza Venture
Capital, said, "Total capital sought by Israeli funds is more than $4
billion. We estimate, however, that in 2005 only about $1.5 billion
will be raised by VCs. As a result, a shortage of capital for
investments in technological companies is expected. This situation is
in contrast to the US where there is an overhang of capital. Israel,
as a result, will continue to have attractive opportunities."
Top funds dominate capital raising
The IVC Research Center has published its report covering Israel's
venture capital industry.
In 2004, a renewed wave of capital raising by Israeli venture capital
funds began in earnest. Several successful fund raisings ended two
years of severe drought among Israel's VC funds when more capital
returned to the investors than raised.
According to IVC estimates, $1 billion in capital is currently
available for investment by Israeli VCs, of which $500 million is
intended for First high-tech company investments. The remainder is
reserved for Follow-on investments.
Additional $1.5 billion is expected to be raised in 2005 by Israeli
VCs for investments in the Israeli high-technology.
Between 1992 and 2004, Israeli venture capital funds raised
approximately $9.1 billion that was exclusively allocated to
investments in Israeli related technology companies. Approximately
$5.6 billion (61 percent) was raised between 2000 and 2004.