Summary of Israeli High-Tech Company Capital Raising Q2 / H1 2007

IVC Reports: Capital Raised by Israeli High-Tech Companies In H1/07 Reaches $842 Million – Up 10% From H1/06 12% of Capital Invested is Directed to Seed Companies

TEL AVIV, Israel--(BUSINESS WIRE)--The following are the findings of the Quarterly Survey conducted by the IVC Research Center, which for more than eight years has been at the forefront of venture capital and private equity research in Israel.

In the second quarter of 2007, 118 Israeli high-tech companies raised $436 million from venture investors – both local and foreign. The amount was up 7 percent from $406 million raised by 121 companies in the previous quarter, and 8 percent ahead of the $404 million raised by 109 companies in the second quarter of 2006. In the first half of 2007, capital raised was $842 million, up 10 percent from H1 2006 levels.

Israeli VC Investment Activity

In the second quarter of 2007, Israeli VCs invested $193 million in Israeli companies, an increase of 13 percent from the previous quarter and 25 percent above Q2 2006 levels. In the first half of 2007, Israeli VCs invested $364 million in Israeli companies, an increase of 10 percent from H1 2006.

“H1 figures indicate 2007 may set a five-year record with high-tech investments reaching $1.7 billion,” said Zeev Holtzman, Chairman of IVC Research Center and Giza Venture Capital. “Despite the global competition in technology-focused investments – mainly from Asian markets

– Israeli high-tech industry continues to appeal to foreign investors and to benefit from the steady growth of worldwide markets." Holtzman also added that "Israeli VC funds, relying on this positive climate, are expected to raise new funds over the coming months which, in turn, will increase their investments in high-tech companies."

IVC Research Center is Israel’s leading research center providing business leaders with an unmatched wealth of data on Israeli venture capital, private equity and high-tech industries. Among IVC products and publications are the Israel Venture Capital Journal (IVCJ), IVC Yearbook and online database containing over 5,000 Israeli high-tech companies, venture capital funds, investment companies, as well as news updates.