The Promising Land: Future Bright for VC in Israel
April 09, 2014
Just this week, Tel Aviv-based companies Kenshoo and Beamr each raised considerable funding rounds, securing $20 million and $9.5 million, respectively. This got us to dig into the PitchBook Platform to see how Israel's venture capital scene has fared in recent years. It turns out, very well. Since the beginning of 2009, VC investors have poured over $3.5 billion into companies headquartered in Israel, completing 579 deals. During that timeframe, the number of deals completed each year increased, tripling from 59 in 2009 to 185 in 2013. There were more completed VC deals in Israel in 2013 than in countries like France and Russia—and more than Switzerland, Sweden and Norway, combined.
Israel's VC deal flow has been dominated by the country's IT industry, which has accounted for 53% of all deals in the time period. Following behind is Israel's healthcare industry (17%), though the industry's deal flow share has slipped each year, dropping from 25% in 2009 to 11% last year. In fact, for the first time in the timeframe, its deal flow share fell significantly behind B2B in 2013.