preface

24
OVERVIEW OF ISRAEL’S HIGH-TECH INDUSTRY
Capital Raised in IPOs on the European Stock Exchange by Israeli Hi-Tech
Companies in 2001-2010
50
12
0 0 0
4
4 7
1 0 0
2
1
0 0
3.3. THE VENTURE CAPITAL INDUSTRY
Israel’s venture capital (VC) industry has played a fundamental role in the
dramatic development of the hi-tech industry in recent years. By providing and
allocating funding, VC has served as a link between start-up companies and
investors, and is regarded as infrastructure essential to every technological
environment. It is also an effective tool in financing, supporting and guiding
companies towards a successful course, in addition to be being one of the
leading VC industries worldwide, with dozens of funds operating from Israel
(“Israeli VC Funds”).
The funds are supplemented by other investors, including public companies,
private investors and non-Israeli-based VC funds.
The VC industry has grown tremendously over the past decade. This is due to
several factors, including: tax exemptions on Israeli VC investments, funds
established in conjunction with large international banks and finance
companies, and the involvement of major organizations wishing to capitalize
on the numerous technology companies originating in Israel.
In 2010, Israeli VC funds invested $371 million in Israeli hi-tech companies,
compared with $410 in 2009 and $780 million in 2008.
The following graph illustrates the capital raised for the hi-tech industry over
the past ten years:
60
30
BDO Israel