An article posted yesterday on Bloomberg.com "Google Backs Israeli Startups After Local Financing Hits 12-Year-Low: Tech" suggests that local Israeli financing is drying up. Here's a link to the article: http://www.bloomberg.com/news/2011-12-29/google-backs-israeli-startups-as-local-financing-hits-12-year-low-tech.html
However, based upon information obtained from the source for the article, the Israel Venture Capital Research Center website (link: http://www.ivc-online.com/), the conclusion appears to be different. Here's a link to the release (.pdf): http://www.ivc-online.com/upload/archive/survey/IVC_Q3-11_Survey_PR-Eng-Final.pdf
However, based upon information obtained from the source for the article, the Israel Venture Capital Research Center website (link: http://www.ivc-online.com/), the conclusion appears to be different. Here's a link to the release (.pdf): http://www.ivc-online.com/upload/archive/survey/IVC_Q3-11_Survey_PR-Eng-Final.pdf
As the above chart indicates (from Israel Venture Capital Research Center website), through the first nine months of 2011, capital raised by Israeli high-tech companies totaled $1.57 billion $393 million, compared to $918 million in 2010, an increase of 71%. The amount raised from Israeli VC funds in the first nine months of 2011 was $393 million, compared to $278 million in the first nine months of 2010, an increase of 41%.
The Bloomberg article focuses on the percentage of total capital raised from Israeli VC firms, and points out that of the total capital raised in 3Q2011, 18% was from Israeli VC firms, and states that this is the lowest amount since IVC started covering the industry in 1999. While the proportion of funding may be low at 18%, the total amount of funding is increasing. In my view, the story should have included all of the information provided in the above chart, which suggests a different conclusion from that in the story.
The Bloomberg article focuses on the percentage of total capital raised from Israeli VC firms, and points out that of the total capital raised in 3Q2011, 18% was from Israeli VC firms, and states that this is the lowest amount since IVC started covering the industry in 1999. While the proportion of funding may be low at 18%, the total amount of funding is increasing. In my view, the story should have included all of the information provided in the above chart, which suggests a different conclusion from that in the story.
