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Israeli high-tech new record

Israeli tech companies raised $2.24 billion in 142 deals in the third quarter of 2019, marking both the highest amount raised and the largest number of deals made in any quarter since 2013. The amount of funding raised represented an increase of 37 percent over the same quarter last year, according to the IVC Research Center.

There were 13 deals of over $50 million, which together accounted for 57% of the total capital raised. The six largest deals, each over $100 million, totaled $841 million, and were led by $200 million for the cybersecurity firm Cybereason. The number of deals made by early stage companies, still in the seed and research and development stages, was 30% higher than in the third quarter of 2018, although revenue growth companies received more funding.

The researchers noted, however, that the proportion of capital invested in early stage companies has been declining over the past year, pointing to a move away from more risky investments. The software sector led the field with $1.4 billion raised in 52 deals, followed by life sciences with $350 million and clean tech with $85 million.

Venture capital-backed deals raised $1.6 billion in the third quarter, for a total of $4.68 billion in the first three quarters of 2019. Israeli venture capital funds invested $280 million in the third quarter, and have invested 18% more in local companies in the first three quarters of 2019 over last year.

The IVC Research Center survey looked at capital raised by Israeli tech companies from both Israeli and foreign venture capital funds, as well as investment companies, corporate investors, incubators and angel investors. The researchers queried 482 investors, including 58 Israeli venture capital funds.

Luke Tress