New 2016 Report Reveals Record Breaking $4.8 Billion Raised By Israeli Tech
Israeli Tech business are having their heyday as software development seemingly appears to lead the way as Israeli tech companies look to be striking an average deal of an astonishing $7,200,000 per round. Unfortunately, though, evidence seems to reveal that there has been a serious drop encountered by life science and internet businesses.
A newly released report came out to the public at the beginning of January this year entitled the “IVC-ZAG Summary of High-tech in Israel Capital Raising – Q4/2016”.
This survey was put together by the IVC Research Center in conjunction with attorneys at Zag-S&W, and it astonishingly reveals that during 2016 high-tech Israeli businesses amassed an unprecedented yearly elevation of $4,800,000,0000, – 11 % more than the $4,300,000,000 procured in 2015.
Continuously escalating throughout the five years previous, the median financing round, which astoundingly was able to rake in a phenomenal 19% more than the usual $5,100,000 five-annual-cycles median, eventually equated with a sum total earnings of an incredible $7,200,000 during the past year, 2016.
During 2016s final quarter, nonetheless, there was potentially an alarming 8% drop in financial investments.
Contrasted with the equivalent phase a year prior, adjacent to a plunge in the quantity of financial transactions.
Through out the entire high-tech Q4 of 2016, businesses managed to do 151 transactions amassing for themselves $1,020,000,000, contrasted with the 202 transactions they amassed during the 2015 penultimate quarter which ultimately acquired for them a hefty $1,100,000,000.
The standard financing cycle remained at $6,700,000 throughout the Q4 during 2016, comparable to the previous quarterly two-annual-cycles median that had resulted in $6,600,000.
Whilst wealth acquisition reached some fresh, high and unparalleled peaks throughout 2016.
Of course there had been scarcer financing rounds when all statistics and totals were compared to what the results were revealed to be during 2015.
There remained, nevertheless, 659 financing transactions that concluded during the past year of 2016. Slightly exceeding a five-annual-cycles median of 657 transactions but ultimately still 7% beneath the previous 2015 record that was shown to be 706 transactions.
The bulk amount of investment transactions in 2016 appear from the data to have been all made into advanced stage businesses. Subsequent investment round – those at C phase or above — when keen investors infuse capital into what they perceive as having been a previously quantifiable profitable business — became solely accountable for the beyond amazing 60 percent of a sum total of funds invested during the past year of 2016.
Primary stage transactions — A round and also seed subsidizing — expanded by a decent 5%, whereas the amount of B funding rounds — monetary infusions made into businesses that are already beyond the development phase and focusing on bringing their companies up to the following higher level — surprisingly plummeted to a worrying low of 30%.
The CEO of the IVC Research Center, Koby Simana did however remark to the media about this that:
“As expected, 2016 ended as a record year in High-tech in Israel capital raising. The fall in B round financing, nonetheless, might be a disconcerting trend for VC businesses.”
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