Efrat Zakai, Director of Research at IVC, said, that "the increase
in the amount of capital raised by Israeli companies in Q2, is mainly
a result of greater foreign investment. In this improved economic
climate, where technology sectors are showing signs of recovery,
Israeli company capital raising should reach $1 billion for 2003."
Investment by Israeli VCs in Israeli high-tech companies was
relatively stable at $94 million. Israeli VC investments in foreign
companies reached $34 million, almost double the $18.2 million
invested in Q1 2002.
Seed companies experienced an increase in funding during Q2 2003. Six
Seed companies raised $19 million or seven percent of total capital
raised, compared to $7 million or only 3 percent of capital raised in
Q1. Companies in the R&D and the Initial Revenue stages attracted the
most funding - 35 percent and 48 percent, respectively.
and in the U S A
Reports from Silicon Valley state that the American venture capital
industry has experienced the first quarterly increase in venture
investment, which rose in the second quarter after hitting a
five-year low in the first quarter. It was the first time such
funding increased on a quarterly basis since early 2000.
Venture firms invested $4.3 billion in the second quarter, up from
$4.0 billion in the first quarter. The increase in the second quarter
of 2003, though slight, is the first
up-move in the post-dot.com era.
Additionally, they invested in 669 deals, compared with 647 in the
prior quarter, according to the study. Those measures are well below
quarterly levels during the tech boom, reflecting fewer, better
investments. They also reflect a "saner" investment pace, said John
Taylor, vice president for research at the National Venture Capital
Association, one of the partners that issued Tuesday's report.
Because venture firms invest on anticipated future market conditions,
they need to see a "sustained opening of the IPO market and
consecutive quarterly increases in corporate capital expenditures"
before declaring the worst is over, said Mark Heesen, NVCA president.
"That being said, the venture capital industry is actually in a good
place right now -- not withholding money, but not spending it freely,
either," Heesen said. "A few more quarters at this pace would be
healthy." Venture investment notched a record $106.2 billion in
8,138 deals at its peak in 2000. Last year, venture funding totaled
$21.2 billion in 3,039 deals, according to NVCA, Thomson Venture
Economics and PricewaterhouseCoopers.
Investments in companies in the early stage of development increased
significantly to $956 million, up from $668 million in the prior
quarter -- the first such increase in three years. said: Tracy
Lefteroff, global managing partner of the venture capital practice at
PricewaterhouseCoopers,
The Kesselman & Kesselman PricewaterhouseCoopers MoneyTree survey
reports a 70% increase in the volume of investments as compared to
the first quarter - at least $ 243 million Twice as many investments
were made by foreign and other investors this quarter as compared to
the previous quarter.
The Quarterly Survey conducted by the IVC Research Center with the
cooperation of the Israel Venture Association (IVA) indicates that
in the second quarter of 2003, 86 Israeli high-tech companies raised
$271 million from venture investors - local and foreign- an increase
of 28 percent from the amount raised in the previous quarter of 2002.
Forty-nine companies attracted more than $1 million. Of these, 12
companies raised between $5 million and $10 million and eight
companies raised more than $10 million each. In the first half,
however, capital raising was down 28 percent from the first six
months 2002 levels. This survey, reviews capital raised by private
Israeli high-tech companies from Israeli venture capital funds and
from other investors. The Survey is based on reports from 130 venture
investors, of which 68 are Israeli management companies and 62 are
other - mostly foreign - investment entities.
Capital raised in financing rounds without participation of Israeli
VCs totaled $50 million, an increase of 72 percent from the previous
quarter.
The second quarter of 2003 marked the end of two consecutive years
of quarter-to-quarter declines in venture capital investing in the
USA. Investments totaled $4.3 billion, up marginally from $4.0
billion in the first quarter of 2003, according to the
PricewaterhouseCoopers Thomson Venture Economics/National Venture
Capital Association MoneyTree Survey.