Israeli High-Tech Companies Raise Record Amount

The Israel Venture Capital Research Center has just released second quarter numbers, and it’s reporting that Israeli high-tech companies raised more in recent months than at any point since 2001. It also notes that first and seed investments are slowing.

From the release:

In the second quarter of 2008, 115 Israeli high-tech companies raised $465 million from venture investors – both local and foreign. The amount was up 7 percent from the second quarter of 2007, but was 25 percent below the unusually high first quarter of the year. In the first half of 2008, capital raised was $1.08 billion, up 28 percent from H1 2007 levels.

The average financing round was $4.04 million, compared to $3.69 million in the second quarter of 2007 and $4.57 million in the first quarter of 2008. Seventy-eight companies attracted more than $1 million each. Of these, 17 companies raised $5 million to $10 million each, 13 companies raised $10 million to $20 million each, and 3 companies raised more than $20 million each.

The communications sector led capital raising in H1 2008 with 26 percent of capital raised followed by software with 22 percent, the life sciences with 17 percent and the Internet with 11 percent of total capital raised.

Seed companies attracted 5 percent of capital raised in the first half of 2008, compared with 12 present in H1 2007 and 8 percent in H1 2006. Early Stage (R&D) companies captured 34 percent of capital raised, Mid-Stage companies (up to $10 million in revenues) 37 percent, and Late Stage companies 24 percent.