Venture money pours into 157 startups in Israel in Q2

Venture investors poured $1.26 billion into Israeli tech startups in the second quarter, the second highest quarterly amount in five years, according to a report from IVC-ZAG.

The second quarter saw 157 companies receive funding, about even with the first quarter.

One of the largest deals done in Q2 was for Valens Semiconductor, which raised $60 million from at least 10 of investors, including Goldman Sachs & Co LLC, Mitsui & Co Global Investment Ltd, Israel Growth Partners, and Samsung Strategy & Innovation Center, according to Thomson Reuters. (See table below for more deals.)

Late-stage activity was strong, with 21 deals accounting for 55 percent of the quarter’s total capital, and the number of deals above $20 million climbed significantly, the report found. Overall, the average round in the quarter grew to $8 million, up from $6.8 million in the first quarter.

Capital going to seed deals rose during the three months, with 38 seed companies raising $65 million.

Software was the leading sector in the quarter, with 38 percent of the capital, but life sciences turned in a strong performance with 31 percent. The year is on course to be a record for life science investing.

Action Item: Download the full report here: IVC_Q2-17 Capital Raising_Survey-Final

Select Israeli VC Deals, Q2 2017

Amount raised ($M)
Valens Semiconductor  Ltd Hod Hasharon $60.00 Amiti Ventures LLC, Aviv Venture Capital, Ltd., Delphi Ventures,Genesis Partners Ltd,Goldman Sachs & Co LLC, MAGNUM Communications Fund, Mitsui & Co Global Investment Ltd, Israel Growth Partners, Ltd., MediaTek Inc, Samsung Strategy & Innovation Center
Otonomo Technologies Ltd Herzeliya Pituach $25.00 Bessemer Venture Partners, Delphi Ventures, StageOne Ventures, Maniv Mobility A LP
Dapulse Labs Ltd Tel Aviv $25.00 Entree Capital Ltd, Genesis Partners Ltd, Insight Venture Partners LLC
Biomx Ltd Ness Ziona $24.00 Johnson & Johnson Innovation-JJDC Inc, OrbiMed Advisors LLC, Seventure Partners SA, Takeda Ventures Inc
Fornova Ltd Yokneam Ilit $17.00 Waypoint Group Holdings Ltd, Deutsche Telekom Capital Partners Management GmbH, Jal Ventures Fund LP
Color chip Israel Ltd Yokneam $17.00 CIRTech Fund, Scale Up Venture Capital
Augury Systems Ltd Haifa $17.00 First Round Capital, Lerer Hippeau Ventures, Pritzker Group Venture Capital, Munich RE/HSB Ventures, Eclipse Ventures,Sound Ventures
Source: Thomson Reuters
Israel venture capital
Source: IVC-ZAG Survey Q2 2017

Photo: An Israeli youth waves a national flag during a rally in the coastal city of Ashkelon showing solidarity with the country’s armed forces, June 6, 2010. REUTERS/Amir Cohen