MoneyTree Q 1 - PwC · Cleantech sector Number of Companies and Total Quarterly investments 2011-...
Transcript of MoneyTree Q 1 - PwC · Cleantech sector Number of Companies and Total Quarterly investments 2011-...
PwC Israel I www.pwc.co.il Q1 2014 MoneyTreeTM Report
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Increased average investments in seed stageSome $232 million invested in VC-backed hi-tech companies in the first quarter of 2014 up from $196 million in corresponding quarter last year
Tel Aviv, Israel -- May 7th, 2014 -- Venture capital-backed hi-tech companies (in which at least one investor in a funding round is a venture capital fund) raised $232 million in Israel during the first quarter of 2014, down with 23% from $300 million in the fourth quarter of 2013 and a 18% increase from $196 million in the corresponding quarter last year, according the latest PwC Israel MoneyTree™ Report.
The report also indicates that 38 Israeli high-tech companies raised VC funding in the first quarter of 2014, compared to 44 in the preceding quarter and 51 in the corresponding quarter of last year. The average investment per company in the quarter under review was $6.1 million, down from $6.8 million in the preceding quarter and up from $3.8 million in the corresponding quarter of last year.
During the current quarter, $121 million, 52% of the total quarterly investment, was invested in 7 deals of over $10M, compared with $196 million (65%) invested in 10 deals in the previous quarter and $128 million (65%) in 9 deals in the first quarter of 2013.
Rubi Suliman, Partner, co-leader of PwC Israel's high-tech practice, Much has been said about the present period in the Israeli hi-tech industry, with its unprecedented exit and IPO success stories, and the resulting significant improvement in VC fund returns. Yet, as this report shows, we still don't see VC investment side picking up with full force. Some stability in investment flux is indeed evident, with a mild upward trend over the last few quarters. VCs and other hi-tech investors do have now significantly more capital in their disposal for making investments. For that, it is reasonable to expect, as hi-tech successes continue, that the amounts invested will follow suit. In the last two quarters, we have witness a new high in the average investment per company. This is another piece of evidence for the maturity of many Israeli hi-tech companies with need for larger investments, as well as the availability of money for making such investments.
In addition, we see yet another rise in investments channeled to seed-phase companies, mainly thanks to the abundance of companies in early stages, and, again, combined with the availability of financial resources from new or follow-up funds of long-standing VCs.
Rubi Suliman, PwC Israel's high-tech practice leader
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The PwC Israel MoneyTree™ Report for the first quarter of 2014
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PwC Israel I www.pwc.com/il Q1 2014 MoneyTreeTM Report
Total annual investment 2008 - 2014 (in millions $)
Average investment per company (in millions $)
427
291
393
287
194162 178
201170
206
253 256
342364
198
324
165
255
171
277
196174
225
300
232
9269 78 81
49 61 5577 72 60 68 74 83 76
44 58 48 59 52 52 51 43 42 44 38
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
Q2-13
Q3-13
Q4-13
Q1-14
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 4.0
5.4
6.8 6.1
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
Q2-13
Q3-13
Q4-13
Q1-14
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% 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%
42%38%
32%36%
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
Q2-13
Q3-13
Q4-13
Q1-14
Analysis by Geographic Location of Company Registration
In addition to investment in high-tech companies with operations in Israel, local venture capital funds also invested approximately $114 million in 4 overseas high-tech companies that are not engaged in operations in Israel.
Companies Receiving Grants from the Office of the Israel Chief Scientist
5 companies, representing 13% of all companies raising VC capital in the first quarter of 2014, are supported by the Office of the Israel Chief Scientist. Some $45 million (19%) of total investment funds went to these companies.
Companies Receiving Grants from the office of the Israel Chief Scientist 2011-2014 (in millions $)
146
75
53
3526 24
66 65
21
5043
26
45
36
2113 13 11 15 16
10 14 11 134 5
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Total quarterly investment(in million $):
Number of investments
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Comparison of Initial and Follow-on investment rates: ($ investments)
Investments made during corresponding quarters:
6131
44
138
2138
19
11079
5197
150
52
281 333
154 186 144217
152 167117 123 128 150 180
18%9%
22%43%
13% 15% 11%
40% 40%29%
43% 50%
22%
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14
Initial
Follow-up
% initial $ of total investment
Q1-08 Q1-09 Q1-10 Q1-11 Q1-12 Q1-13 Q1-14Total quarterly investment
(in million $): 427 194 170 342 165 196 232
Number of investments 92 49 72 83 48 51 38
427
194170
342
165196
232
9249
72 8348
51380
50
100
150
200
250
300
350
400
450
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Software sector
Number of Companies and Total Quarterly investments 2011- 2014 (in millions $)
Communications and Networking sector
Number of Companies and Total Quarterly investments 2011- 2014 (in millions $)
Total annual Investment by sector 2011 - 2014 (% of total $ invested)
Analysis by Leading Technological Sector
19%
41%
16%14%
6%4%
0%
8%
27%
31%
6%
11%13%
4%
31%
18%21%
9% 9%
3%
9%
21%
12%
23%
12%
18%
6%8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Communications andNetworking
Software Internet Semiconductors Life Sciences Cleantech Miscellaneous
Q1 2014 2013 2012 2011
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Total Investments 451411251812371166267663588Number of Companies 95336161161212111215
-
20
40
60
80
100
120
140
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Total Investments 95994635634239413143224639Number of Companies 131514121215131110951417
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20
40
60
80
100
120
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Internet Sector
Number of Companies and Total Quarterly investments 2011- 2014 (in millions $)
Semiconductors Sector
Number of Companies and Total Quarterly investments 2011- 2014 (in millions $)
Life Sciences Sector
Number of Companies and Total Quarterly investments 2011- 2014 (in millions $)
Miscellaneous Sector
Number of Companies and Total Quarterly investments 2011- 2014 (in millions $)
Analysis by Leading Technological Sector
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Total Investments 369884504653188325722310975Number of Companies 61414131111111798121315
-
20
40
60
80
100
120
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Total Investments 33034951436224265447Number of Companies 4127532524277
-
10
20
30
40
50
60
70
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Total Investments 134418633122692759566345Number of Companies 44547197111071315
-
10
20
30
40
50
60
70
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Total Investments -19139175421819154723Number of Companies -112422104134126
- 5 10 15 20 25 30 35 40 45 50
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Cleantech sector
Number of Companies and Total Quarterly investments 2011- 2014 (in millions $)
Total Investment by sector
Communications and Networking ,
19%
Software, 41%
Internet, 16%
Semiconductors, 14%
Life Sciences, 6% Cleantech, 4%
Analysis by Leading Technological Sector
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Total Investments 1025626221682-22101126Number of Companies 24326443-2358
-
10
20
30
40
50
60
70
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Early round
Analysis by Investment Round
Number of Companies and total quarterly investments 2011- 2014 (in millions $)
Total annual Investment by Investment Round 2011 - 2014 (% of total $ invested)
51%
3%
33%
12%
49%
21% 19%
11%
31%
20%
34%
15%
31%
13%
47%
10%
0%
10%
20%
30%
40%
50%
60%
Early Round Third Round Later Round Bridge Loan
Q1 2014 2013 2012 2011
Third round
Number of Companies and total quarterly investments 2011- 2014 (in millions $)
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Total Investments 119217269910075429158766514691Number of Companies 1823922221920272022152926
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50
100
150
200
250
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Total Investments 845929398234421821632149Number of Companies 25124466845927
- 10 20 30 40 50 60 70 80 90 100
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Bridge Loan
Number of Companies and total quarterly investments 2011- 2014 (in millions $)
Total Investment by Investment Round
Early Round,
51%
Third Round, 3%
Later Round,
33%
Bridge Loan, 12%
Later Round
Number of Companies and total quarterly investments 2011- 2014 (in millions $)
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Total Investments 77255251439565954220652163152Number of Companies 76358117851451515
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50
100
150
200
250
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Total Investments 28135515142531264621183349Number of Companies 11101812171619161917153035
-
10
20
30
40
50
60
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Analysis by Company Development Stage
Seed Stage
Number of Companies and total quarterly investments 2011- 2014 (in millions $)
Intermediate stage
Number of Companies and total quarterly investments 2011- 2014 (in millions $)
Total annual Investment by Development Stage 2011 - 2014 (% of total $ invested)
9%
51%
34%
5%6%
44% 44%
6%8%
45%
31%
16%
6%
33%36%
25%
0%
10%
20%
30%
40%
50%
60%
Seed/Startup Stage Early stage Expansion stage Later Stage
Q1 2014 2013 2012 2011
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Total Investments 22610172233342929142215Number of Companies 575781535683108
-
5
10
15
20
25
30
35
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Total Investments 198292196125170170108249129175139296234Number of Companies 31343129392942523841365963
-
50
100
150
200
250
300
350
seed stage
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Analysis by Company Development Stage
Later Stage
Number of Companies and total quarterly investments 2011- 2014 (in millions $)
Total Investment by company development stageSplit of the Intermediate stage between early and expansion stage
Seed/Startup
Stage, 9%
Early stage, 51%
Expansion stage, 34%
Later Stage, 5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1-14Q4-13Q3-13Q2-13Q1-13Q4-12Q3-12Q2-12Q1-12Q4-11Q3-11Q2-11Q1-11
Early stage Expansion stage
Q1-14
Q4-13
Q3-13
Q2-13
Q1-13
Q4-12
Q3-12
Q2-12
Q1-12
Q4-11
Q3-11
Q2-11
Q1-11
Total Investments 12219324746017120454693Number of Companies 23674872495712
-
20
40
60
80
100
120
140
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The MoneyTree™ Report is published quarterly by Kesselman & Kesselman PwC Israel, in conjunction with the reports published in the United States and Europe by the global accounting, tax and consulting firm, PricewaterhouseCoopers. This quarter, 33 venture capital firms 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.The MoneyTree™ Report measures investments by the professional venture capital community in private emerging hi-tech companies in Israel. The information presented in the MoneyTree report includes investment rounds in Israeli hi-tech com-panies or Israeli related (companies that are incorporated outside of Israel, but were founded by Israeli founders with R&D subsidiary in Israel), with at least one VC participating in the financing round. The VC's that are included are all Israeli VC's or foreign VC's that have at least one partner in Israel. The information is mostly reported to us by the VC's and other reli-able sources and is verified prior to its inclusion in the report.
For further information
Karin Gattegno, Business Development Manager ,Hi-Tech department, PwC Israel [email protected]
Elazar Evers, Manager, Hi-Tech department , PwC Israel03-7954549 [email protected]
© 2014 Kesselman & Kesselman. All rights reserved.In this document, “PwC Israel” refers to Kesselman & Kesselman, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
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