Israeli tech firms raise $5.24 billion in 2017, up 9% from 2016

Israeli high-tech companies raised $5.24 billion in 620 deals in 2017, an increase of 9 percent compared to the $4.83 billion attracted in 2016, in 673 deals, Israel’s IVC Research Center and attorneys Zysman, Aharoni, Gayer & Co. (ZAG S&W) said in a report Wednesday.

The total capital raised by Israeli high-tech companies has been growing since 2013, the data showed. The jump in 2017 was fed by four large deals of over $100 million each, capturing 12 percent of the total amount raised. These were funds raised by cybersecurity startup Cybereason, ridesharing firm Via, AI- insurance firm Lemonade and Skybox Security.

The average financing round in 2017 rose to an average $8.5 million in 2017, from an average $3.6 million in 2013, the IVC-ZAG 2017 Israeli High-Tech Capital Raising Survey said.

Israeli VC funds invested $814 million in 2017, the highest sum since 2013, and an increase of 25 percent from $651 million in 2016, making up some 16 percent of all of the money raised by Israeli high-tech companies, with the other 84% of funds raised by foreign VCs and other investors, both Israeli and foreign.

In 2017, as in the past two years, companies in growth stages (mid and late stages) attracted the largest part of the total capital raised — raising $3.9 billion, compared to $3.4 billion in 2016. Mid-stage companies increased their share to $2.1 billion in 2017, compared to $1.8 billion in 2016. Seed and early stage companies raised $1.36 billion in total throughout 2017, compared to $1.43 billion the previous year.

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