October 25, 2017
Israeli tech companies raised $1.44 billion in the third quarter of the year, up 54 percent from the $933 million raised in the same period a year earlier, according to a report released by IVC Research Center and the Tel Aviv law firm Zysman Aharoni Gayer & Co. (ZAG S&W).
The number of fundraising deals in the third quarter of the year — 144 — was higher than the 140 deals in the same quarter a year ago, but well below the 202 deals registered in the fourth quarter of 2015. In the second quarter of this year the number of deals totaled 158.
The average financing round for the third quarter was $10 million, the highest amount in five years, compared with an average $6.7 million in the same period a year earlier.
In the first nine months of 2017, Israeli high-tech companies raised $3.8 billion, equal to the record amount raised in the corresponding period of 2016. The number of deals, however — 457 deals in total — declined to the lowest number in the past five years.
“Most of this decrease stems from seed and early stage deals, a 17% decline compared with the five-year average,” Marianna Shapira, research director of IVC Research Center, said in a phone interview. “Basically, what it means is that a smaller number of startups are getting more money, while others are missing out.”
For additional ventures to succeed, a reversal in this trend is needed in the fourth quarter, she explained.
Read More: https://www.timesofisrael.com/israeli-tech-firms-raise-54-more-funds-in-3q-at-1-44-billion/