Press Release
-FOR IMMEDIATE RELEASE-
IVC Report:
Most Active Venture Capital Funds in Israel - 2013
Key facts:



Foreign VCs overtake local funds in first investment activity
Increased activity by Micro VC funds boosts numbers of top-ranked VCs
Micro fund SG and Pontifax top list of most active funds
Tel Aviv, Israel, March 12, 2014. IVC Research Center released today a report analyzing
first investments in Israel by venture capital funds in the five years through 2013, and ranking
the most active venture capital funds that invested in Israel in 2013. Based on the IVC
Industry Analytics business intelligence product, the report reveals trends in venture capital
fund first investments in Israel. While 2013 first investments showed little change in both the
number of VCs and number of first investments compared to the previous two years,
interesting changes have taken place in the dynamics and mix of those initiating first
investments.
Chart 1: VC Funds Making First Investments: Number of Deals vs. Number of VCs
2009-2013
-199 HaHashmonaim St., 2nd Floor, Tel Aviv 67133, Israel  www.ivc-online.com
Tel. +972-73-212-2333 Fax. +972-73-212-2323 E-mail: [email protected]
The five-year average for VC first investments at 208 deals and 103 investors is skewed
downward by a relatively low number of first investments in 2009 and 2010. In the three
years through 2013, first investments leveled, on average, at around 255 deals, by 121
investors. 2013 showed marginal decrease from 2012 figures, with 255 deals and 122
investors making first investments, compared to 260 deals and 122 players in 2012, reflecting
a two percent decrease in the number of deals, but keeping it at par with the three-year
average.
Marianna Shapira, Research Manager at IVC, explains that the data for 2013 – showing little
change from the previous two years – do not present the full picture. "Our surveys and
research pointed to changes in several trends," says Shapira. "So, the first thing we did was
look at the ratio of foreign to Israeli VC funds in making first investments.”
Chart 2: Number of VC Funds Making First Investments: Foreign vs. Israeli
2009-2013
“The market in Israel was accustomed to foreign investors being ‘gap fillers’ or ‘tag along’
investors, but we can see a dramatic increase in the number of foreign venture capital funds
initiating first investments over the past five years,” says Shapira. Eighty-four foreign VC
funds made at least one first investment in Israel in 2013, an 11 percent increase compared to
2012’s 76, and a substantial 223 percent increase from 2009 levels. And while foreign
investors increased their activity in Israel, Israeli VC fund first investments dropped to near
2009's level, with only 38 Israeli VC funds making at least one first investment. Of 255 first
investment deals made in 2013 only 111, or 44 percent, were made by Israeli VC funds.
“This is the first time Israeli VC first investments dropped below 50 percent of the total,” says
Shapira. “They accounted for 52 percent in 2012 and 72 percent in 2009. Even in 2010, when
the number of active Israeli funds fell to 29, they still managed to hold 51 percent of first
investments. We’ve observed the influx of foreign capital to high-tech financing in our
recently published 2013 high-tech capital raising survey, and this analysis confirms that
foreign VC funds are indeed taking the lead in new high-tech investments in Israel.”
-299 HaHashmonaim St., 2nd Floor, Tel Aviv 67133, Israel  www.ivc-online.com
Tel. +972-73-212-2333 Fax. +972-73-212-2323 E-mail: [email protected]
Chart 3: Top-Ranked VC Investors Making First Investments: Number of Deals vs.
Number of VCs
2009-2013
The number of VC investors in the five top ranked positions increased in 2013 as did their
number of first investments. Seventeen funds, making from five to 11 first investments in
2013, placed in the top five rankings with a total of 106 first investments. While the number
of VCs in the top five rankings was only the second largest in five years, the total number of
deals reached record levels – 89 percent above 2012 figures and 31 percent above the fiveyear average.
The shift in trend, explains IVC, is a result of the increase in the both the number of foreign
VC funds and the number of micro VC funds making multiple first investments. While there
is an increase in the number of investors making only a single first investment – 79 in 2013,
compared to 67 in 2012 and a five-year average of 62 – half of the micro VC funds made
more than one first investment, compared to only 32 percent of other funds.
Koby Simana, CEO of IVC Research Center explains: “We are seeing a mix of trends in
2013, but everything points in the same direction: Israeli VC funds are running out of capital
for first investments. The top ranked list includes mostly VC funds that succeeded in raising
capital in the past three years, such as Pitango, Magma and Sequoia Israel, as well as microVCs Wadi and lool.”
The micro-VC investment model allows for more investments, adds Simana. “The increase in
micro-VC activity is both a function of their relative success in raising capital and the fact that
their average investments are far smaller than those made by larger funds. This explains why
we see more of them making multiple investments. As the trend continues, we expect to find
additional micro funds joining the top ranks in 2014.”
The most active micro venture capital fund in 2013 was SG, a US fund managing $25 million
in capital, with 11 first investments in total. Ranking second was Wadi Ventures, a local
micro-VC fund raised in 2012, with eight first investments in 2013. Among other funds, the
top ranked fund was Pontifax, with eight investments made by an $88 million fund raised in
-399 HaHashmonaim St., 2nd Floor, Tel Aviv 67133, Israel  www.ivc-online.com
Tel. +972-73-212-2333 Fax. +972-73-212-2323 E-mail: [email protected]
2011. Ranking second with seven first investments are two funds: Pitango’s sixth fund ($270
million), and Magma’s third funds ($110 million), both raised in 2012.
This press release contains analyses based on the IVC Most Active Investors Dashboard, an
IVC Industry Analytics business intelligence product, containing detailed information on
active VC and other investors via an interactive, user-friendly interface. The Dashboard is
available online to IVC Industry Analytics subscribers and presents a wealth of continually
updated investor data, which can be filtered according to year, type of investor, type of
investment and more.
Further information on Most Active Venture Capital Funds in 2013 will be published in IVC
High-Tech Yearbook 2014 in April 2014.
Methodology:
The IVC Research Center ranked Israeli and foreign venture capital funds according to the number of
first investments made in Israeli high-tech companies in 2013, excluding incubated companies, foreign
companies or non-technology companies. The data are based on information received directly from the
VC funds and from the IVC-Online Database (www.ivc-online.com). Rankings reflect the number of
deals only, not capital invested and are divided into two tables, according to managed capital: VC
funds with $50 million or more under management and micro-VC funds.
Most Active Venture Capital Funds in Israel - 2013
Ranked by Number of First Investments
Rank
VC Fund
Capital
Managed
($m)
Total First
Investments
1
Pontifax1
206
8
TheraCoat, OCON, V-Wave, HeadSense, BioCep, Bioblast, Eloxx,
Metabomed
2
Pitango
1610
7
Keepy, JethroData, Taboola, SalesPredict, Ubimo, Revizer, Carambola
Vintage
696
6
Innovid, Superfish, SundaySky, Wilocity, Outbrain, TabTale
Magma
300
6
AppWiz, WireX, CloudEndure, Foresight Info, Inplerus, Adience
3
2
3
Battery
N/R
6
Elastifile, SiSense, Scodix, Cyvera, Stratoscale, PrimaryData
Horizons3,4
N/R
6
Nipendo, Kaiima, Meteo-Logic, MeMed, Aniways, Crosswise
3
N/R
6
Scodix, Personetics, Insightera, Bluevine, PrimaryData, Elastifile
N/R
6
Interlude, iDoMoo, MobileSpaces, Eyeview, OverWolf, Panoramic
Power
800
5
Pyramid Analytics, Seculert, Forter, Moovit, EndoSpan
222
5
Medigus6, BioLineRx6, InspireMD6, Treato, Redhill6
Genesis
Angels3
N/R
5
Infinity AR6, Beyond Verbal, StoreDot, Sirin, Stox
Kreos3, 7
N/R
5
GetTaxi, MultiPhy, Pontis, QualiSystems, RealMatch
Lightspeed
Marker3
4
Company Portfolio Name
Sequoia
Israel5
OrbiMed
Israel1,5
Notes:
• Ranking includes Israeli and foreign VC funds that manage $50 million and over in capital
• Amount of capital managed by foreign VC funds is not relevant (N/R) for this ranking
1. Life sciences specialized fund
2. VC / Secondary fund
3. A foreign VC fund with an allocation to Israel
4. Controlled by Li Ka Shing (Hong Kong)
5. Israel-dedicated fund of a foreign fund
6. Public company
7. Venture lending fund
-499 HaHashmonaim St., 2nd Floor, Tel Aviv 67133, Israel  www.ivc-online.com
Tel. +972-73-212-2333 Fax. +972-73-212-2323 E-mail: [email protected]
Most Active Micro-Venture Capital Funds in Israel - 2013
Ranked by Number of First Investments
Rank
VC Fund
Capital
Managed
($m)
Total First
Investments
1
SG VC1
N/R
11
2
Wadi
3
8
lool
30
6
Innodo
5
6
Bablic, Clctin, Folloyu, Meetey, PicBadges, SeatID,
Talking Layers, WinkApp
MyPermissions, Tomodo, Easy Social Shop, MediSafe,
Kidoz, Doobe
Biocatch, Scoreoid, Screemo, Spetz, Tipengo, SePaYa
3
4
Heyku, HomeDine in, Pronto.ly, Veed.Me
N/R
4
Mika, Fl3ur, Swifto, Qlika
3
Pulver's
4
Hillsven
2
Company Portfolio Name
Fireblade, Mallpad, Zao, Interlude, DudaMobile,
Keywee, Tipalti, SalesPredict, Loop Commerce,
Pluralis, Commerce Sciences
Notes:
• Ranking includes Israeli and foreign micro VC funds (managing less than $50 million in capital)
• Amount of capital managed by foreign micro VC funds is not relevant (N/R) for this ranking
1. A foreign VC fund with an allocation to Israel
2. A foreign VC fund
For additional information:
Marianna Shapira, Research Manager, IVC +972-73-212-2339 [email protected]
About the authors of this survey:
IVC Research Center is the leading online provider of data and analyses on Israel’s high-tech, venture capital
and private equity industries. Its information is used by all key decision-makers, strategic and financial investors,
government agencies and academic and research institutions in Israel.

IVC-Online Database (www.ivc-online.com) showcases over 11,000 Israeli technology startups and
includes information on private companies, investors, venture capital and private equity funds, angel
groups, incubators, accelerators, investment firms, professional service providers, investments,
financing, exits, acquisitions, founders, key executives and R&D centers.
o

Publications include newsletters; Daily Alerts; the IVC High-Tech Yearbook - the Israel HighTech, Venture Capital and Private Equity Directory; surveys; research papers and reports; and
interactive dashboards
IVC Industry Analytics – analysis, research and insights into the status, main trends and opportunities
related to exits, investments, investors, sectors and stages
-599 HaHashmonaim St., 2nd Floor, Tel Aviv 67133, Israel  www.ivc-online.com
Tel. +972-73-212-2333 Fax. +972-73-212-2323 E-mail: [email protected]