The volume of capital raised in Israel in 2018 was $ 6.5 billion, an increase of 17% compared to 2017, according to the annual report issued by IVC Research, in cooperation with the law firm Zisman Aharoni Gayer & Co. The rate of growth in 2018 was higher than that Which was recorded in 2017 and 2016.
Not all of the money necessarily flows into the bank accounts of the funds, but rather is used to purchase shares of existing shareholders and of veteran employees. For example, the report mentions that Citrix raised $ 60 million, but $ 45 million was used to buy existing shares.
The amount that flowed into start-ups increased, but the number of issuances continued to decline, reaching 623 transactions, compared with 661 in the previous year. This is not a new trend, but it is repeated four years in a row. Thus, the volume of capital raised by 36% from 2015, but the number of raisings has since decreased by 10%. This means that each start-up raises a higher amount on average - in 2018 the number of small transactions decreased from $ 5 million, compared with an increase in fundraising in excess of $ 20 million.
In the high-tech industry there are fears of a slowdown in capital raising, but it is still not reflected and its effects appear only in the long term. The reason for this is that venture capital funds, which invest 3-4 years after opening the fund, still hold large sums of money in their coffers. Thus, in the fourth quarter of 2018, capital raised amounted to $ 1.82 billion, an increase of 26% compared to the corresponding quarter in 2017.
The main reason for the increase in the volume of transactions is the more significant number of large transactions. $ 4.1 billion was raised in 2018 in deals worth over $ 20 million, with five deals worth more than $ 100 million each.
Landa Group raised $ 300 million; Jfrog raised $ 165 million; Insightec raised $ 150 million; Trax raised $ 125 million and eToro raised $ 100 million. Big deals were specifically in the field of Pintek, apart from eToro, Next Insurance raised $ 83 million, and Hippo Insurance raised $ 95 million. Cyber companies raised a total of $ 1.08 billion, and companies operating in the field of artificial intelligence raised $ 1.89 billion.