results venture capital investments plunge some $ 196 · pdf fileq1 2013 results il moneytree...
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Q 12 0 1 3r e s u l t s IL
Rep
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ReportVenture Capital Investments PlungeSome $ 196 million VC financing invested in hi-tech companies in Q1 2013 compared with $ 277 million (-29%) in previous quarter
Tel Aviv, Israel - May 19, 2013 - Venture capital-backed tech companies (in which at least one investor in a funding round is a venture capital fund) raised $196 million in Israel during the first quarter of 2013, down with 29% from $277 million in the previous quarter and a 19% increase from $165 million in the corresponding quarter last year, according to the latest PwC Israel MoneyTree™ Report.
The report also indicates that 51 Israeli high-tech companies raised VC funding in the first quarter of 2013, compared to 52 in the preceding quarter and 48 in the corresponding quarter of last year. The average investment per company in the quarter under review was $3.6 million, down from $5.3 million in the preceding quarter and $3.4 million in the corresponding quarter of last year.
During the current quarter, $128 million were invested in 9 deals of over $10 million, compared with $191 million invested in 12 deals in the previous quarter and $70.5 million in 5 deals in Q1 of 2012.
Rubi Suliman, PwC Israel's high-tech practice leader pointed out that, "we witnessed a relatively lower VC investment levels in companies during Q1 2013. This is also the trend in the US, where VC investment levels this quarter reached a two-year low. As we see a more prominent presence in the marketplace of other investment players such as angels, private funds, incubators, and accelerators, increasingly more companies raise investments early on from non-VC sources. This leads to a situation where early, small investments are available to companies, allowing many new startups. In later, more significant raising rounds, those companies face difficulties and limited options in the Israeli market, driving increasingly more startups to seek funding overseas".
Rubi Suliman, PwC Israel's high-tech practice leader
www.pwc.com/il
The PwC Israel MoneyTree™ Report for the first quarter of 2013
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Average investment per company (in millions $)
Total annual investment 2008- Q1 2013 (in million $)
4.64.2
5
3.54
2.73.2
2.6 2.4
3.4 3.7 3.54.1
4.8 4.5
5.6
3.4
4.3
3.3
5.3
3.8
0
1
2
3
4
5
6
Q1-08
Q2-08
Q3-08
Q4-08
Q1-09
Q2-09
Q3-09
Q4-09
Q1-10
Q2-10
Q3-10
Q4-10
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Q1-13
Average investment per company (in millions $)
427
291
393
287
194162
178201
170206
253256
342364
198
324
165
255
171
277
196
0
50
100
150
200
250
300
350
400
450
Q1-08
Q2-08
Q3-08
Q4-08
Q1-09
Q2-09
Q3-09
Q4-09
Q1-10
Q2-10
Q3-10
Q4-10
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Q1-13
Total annual investment 2008- Q1 2013 (in million $):
Total annual investment 2008-2012 (in million $):
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Analysis by Geographic Location of Company Registration
Besides the $196 million VC investments in Israeli companies, 12 additional investments in foreign companies were reported to us totaling $180 million. Most of these investments were made in companies in the USA.
Companies Receiving Grants from the Office of the Israel Chief Scientist
14 companies, representing 27% of all companies raising VC capital in the first Quarter of 2013, are supported by the Office of the Israel Chief Scientist. Some 21$ million of total investment funds went to these companies.
Percentage of funds making no investment
24%
35%
26%30%30%29%
34%32%36%
42%46%46%
43%39%
34%41%
52%
32%
46%45%51%
0%
10%
20%
30%
40%
50%
60%
Q1-08
Q2-08
Q3-08
Q4-08
Q1-09
Q2-09
Q3-09
Q4-09
Q1-10
Q2-10
Q3-10
Q4-10
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Q1-13
Percentage of funds making no investment
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Communications and Networking sector
Analysis by Leading Technological Sector
272 256
206 204
437
45 50 55 63 86
-50
100 150 200 250 300 350 400 450 500
20122011201020092008
Communications and Networking Number of Companies and total annual investments
2008-2012 (in millions $)
Total Investments
Number of companies
Number of Companies and Total Quarterly investments 2011- Q1 2013 (in millions $)
18
123
71
16
626766
35
88
6
1611 6
1212111215
0
20
40
60
80
100
120
140
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Communications and Networking Number of Companies and Total Quarterly investments 2011- Q1 2013 (in millions $)
Total Investments
Number of Companies
Software sector
272 256
206 204
437
45 50 55 63 86
-50
100 150 200 250 300 350 400 450 500
20122011201020092008
Communications and Networking Number of Companies and total annual investments
2008-2012 (in millions $)
Total Investments
Number of companies
Number of Companies and Total Quarterly investments 2011- Q1 2013 (in millions $)
63
42 39 41 31 43 22 46 39
12 1513 111095
1417
-
10
20
30
40
50
60
70
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Software SectorNumber of Companies and total quarterly investments 2011- Q1 2013 (in millions $ )
Total Investments
Number of Companies
Internet Sector
272 256
206 204
437
45 50 55 63 86
-50
100 150 200 250 300 350 400 450 500
20122011201020092008
Communications and Networking Number of Companies and total annual investments
2008-2012 (in millions $)
Total Investments
Number of companies
Number of Companies and Total Quarterly investments 2011- Q1 2013 (in millions $)
46 53
18
83 25 72 23
109
75
11 1111
1798
12
1315
-
20
40
60
80
100
120
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Internet SectorNumber of Companies and total quarterly
investments 2011 - Q1 2013
Total Investments
Number of Companies
Semiconductors Sector
272 256
206 204
437
45 50 55 63 86
-50
100 150 200 250 300 350 400 450 500
20122011201020092008
Communications and Networking Number of Companies and total annual investments
2008-2012 (in millions $)
Total Investments
Number of companies
Number of Companies and Total Quarterly investments 2011- Q1 2013 (in millions $)
5 14
3
62
2
42
6
54
47
5 32
5
24277
-
10
20
30
40
50
60
70
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Semiconductors Sector Number of Companies and total quarterly
investments 2011- Q1 2013
Total Investments
Number of Companies
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Life Sciences Sector
272 256
206 204
437
45 50 55 63 86
-50
100 150 200 250 300 350 400 450 500
20122011201020092008
Communications and Networking Number of Companies and total annual investments
2008-2012 (in millions $)
Total Investments
Number of companies
Number of Companies and Total Quarterly investments 2011- Q1 2013 (in millions $)
33
12
26
9
27
59 56 63
45
7 1 9 7 11
10
7
13 15
-
10
20
30
40
50
60
70
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Life Sciences SectorNumber of Companies and total quarterly
investments 2011- Q1 2013
Total Investments
Number of Companies
Miscellaneous Sector
272 256
206 204
437
45 50 55 63 86
-50
100 150 200 250 300 350 400 450 500
20122011201020092008
Communications and Networking Number of Companies and total annual investments
2008-2012 (in millions $)
Total Investments
Number of companies
Number of Companies and Total Quarterly investments 2011- Q1 2013 (in millions $)
31 33
13
44
18
41
25
58
49
10 66
13
4
157
1714
-
10
20
30
40
50
60
70
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Miscellaneous Sector Number of Companies and total quarterly investments 2011 - Q1 2013 (in millions $ )
Total Investments
Number of Companies
Cleantech sector (Cross sectoral)
272 256
206 204
437
45 50 55 63 86
-50
100 150 200 250 300 350 400 450 500
20122011201020092008
Communications and Networking Number of Companies and total annual investments
2008-2012 (in millions $)
Total Investments
Number of companies
Number of Companies and Total Quarterly investments 2011- Q1 2013 (in millions $)
22 16
8 2
18
59
10 11
26
6 4 4 3
3 4 3 5 8
-
10
20
30
40
50
60
70
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Cleantech sector (Cross sectoral)Number of Companies and Total Quarterly investments 2011- Q1 2013 (in millions $)
Total Investments
Number of Companies
Total investment by sectors – first quarter 2013
Communications &
Networking 9%
Software 32%
Life Sciences 17%
Internet 23%
Semiconductors 3%
Cleantech 11%
Other 5%
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100 75
42
91
58 76 65
146
91 22 19 20 27 20
22 15
29 26
-
20
40
60
80
100
120
140
160
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Early RoundNumber of Companies and total quarterly investments 2011- Q1 2013 (in millions $ )
Total Investments
Number of Companies
Early round
Analysis by Investment Round
Number of Companies and total quarterly investments 2011- Q1 2013 (in millions $)
Third round
Number of Companies and total quarterly investments 2011- Q1 2013 (in millions $)
100 75
42
91
58 76 65
146
91 22 19 20 27 20
22 15
29 26
-
20
40
60
80
100
120
140
160
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Early RoundNumber of Companies and total quarterly investments 2011- Q1 2013 (in millions $ )
Total Investments
Number of Companies
39
82
34 42
18 21
63
21 49 4 6 6 8 4 5 9
2 7 -
10 20 30 40 50 60 70 80 90
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Third RoundNumber of Companies and total quarterly investments 2011- Q1 2013 (in millions $ )
Total Investments
Later Round
Number of Companies and total quarterly investments 2011- Q1 2013 (in millions $)
Bridge Loan
Number of Companies and total quarterly investments 2011- Q1 2013 (in millions $)
100 75
42
91
58 76 65
146
91 22 19 20 27 20
22 15
29 26
-
20
40
60
80
100
120
140
160
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Early RoundNumber of Companies and total quarterly investments 2011- Q1 2013 (in millions $ )
Total Investments
Number of Companies
44
95 65
95
42
206
53
163 152
8 11 7 8 5 14 5 15 15 -
50
100
150
200
250
Q1-13Q4-12Q3-12Q2-12Q1-12Q4-11Q3-11Q2-11Q1-11
Later RoundNumber of Companies and total quarterly investments 2011- Q1 2013 (in millions $ )
Total Investments
Number of Companies
100 75
42
91
58 76 65
146
91 22 19 20 27 20
22 15
29 26
-
20
40
60
80
100
120
140
160
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Early RoundNumber of Companies and total quarterly investments 2011- Q1 2013 (in millions $ )
Total Investments
Number of Companies
100 75
42
91
58 76 65
146
91 22 19 20 27 20
22 15
29 26
-
20
40
60
80
100
120
140
160
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Early RoundNumber of Companies and total quarterly investments 2011- Q1 2013 (in millions $ )
Total Investments
Number of Companies
14 25
31 26
46
21 18
33
49
17 16 19 16 19 17
15
30
35
-
10
20
30
40
50
60
Q1-13Q4-12Q3-12Q2-12Q1-12Q4-11Q3-11Q2-11Q1-11
Bridge LoanNumber of Companies and total quarterly investments 2011- Q1 2013 (in millions $ )
Total Investments
Number of Companies
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Total investment by investment round
Early Round,
51%Third
Round, 20%
Later Round,
22%
Bridge Loan, 7%
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Analysis by Company Development Stage
23
33
3 4
29 29
14
22
15
8
15
3 5
6 8
3 10 8
-
5
10
15
20
25
30
35
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Seed/Start Up StageNumber of Companies and total quarterly investments 2011- Q1 2013 (in millions $ )
Total Investments
Number of Companies
Seed/Start Up Stage
Number of Companies and total quarterly investments 2011- Q1 2013 (in millions $)
Intermediate stage
Number of Companies and total quarterly investments 2011- Q1 2013 (in millions $)
23
33
3 4
29 29
14
22
15
8
15
3 5
6 8
3 10 8
-
5
10
15
20
25
30
35
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Seed/Start Up StageNumber of Companies and total quarterly investments 2011- Q1 2013 (in millions $ )
Total Investments
Number of Companies
170 170
108
249
129
175 139
296 234
39 29 42 52 38 41 36 59 63
-
50
100
150
200
250
300
350
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Intermediate stageof Companies and total quarterly
investments 2011- Q1 2013 (in millions $ )
Total Investments
Number of Companies
Later Stage
Number of Companies and total quarterly investments 2011- Q1 2013 (in millions $)
4
74 60
1 7
120
45 46
93
4 8 7 2 4 9 5 7 12
-
20
40
60
80
100
120
140
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Later StageNumber of Companies and total quarterly investments 2011- Q1 2013 (in millions $)
Total Investments
23
33
3 4
29 29
14
22
15
8
15
3 5
6 8
3 10 8
-
5
10
15
20
25
30
35
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Seed/Start Up StageNumber of Companies and total quarterly investments 2011- Q1 2013 (in millions $ )
Total Investments
Number of Companies
23
33
3 4
29 29
14
22
15
8
15
3 5
6 8
3 10 8
-
5
10
15
20
25
30
35
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Seed/Start Up StageNumber of Companies and total quarterly investments 2011- Q1 2013 (in millions $ )
Total Investments
Number of Companies
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1-13Q4-12Q3-12Q2-12Q1-12Q4-11Q3-11Q2-11Q1-11
Split of the Intermediate stage between early and expansion stage
expansion stage
Early stage
Total investment by company development stage
Split of the Intermediate stage between early and expansion stage
Seed/Startup, 12%
Early Stage, 60%
Expansion Stage, 26%
Later Stage, 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1-13Q4-12Q3-12Q2-12Q1-12Q4-11Q3-11Q2-11Q1-11
Split of the Intermediate stage between early and expansion stage
expansion stage
Early stage
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1-13Q4-12Q3-12Q2-12Q1-12Q4-11Q3-11Q2-11Q1-11
Split of the Intermediate stage between early and expansion stage
expansion stage
Early stage
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The MoneyTree™ Report is published quarterly by PwC Israel, in conjunction with the reports published in the United States and Europe by the global financial services network, PwC. This quarter,35 Israeli venture capital fund or funds with an Israeli representative participated in the production of the Report. The findings of the Report are widely used each quarter by Israeli and foreign venture capital funds, commercial banks, investment banks and other financial institutions both in Israel and abroad, high-tech companies, government departments, the Office of the Chief Scientist and others.
For further information
Karin Gattegno, Business Development Manager Hi-Tech department, PwC [email protected]