MoneyTree Q1 - PwC · Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Total...
Transcript of MoneyTree Q1 - PwC · Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Total...
PwC Israel I www.pwc.co.il Q1 2015 MoneyTreeTM Report
Q 12 0 1 5r e s u l t s IL
Rep
ort
MoneyTreeTM
Report
VC investment up 34% compared to the parallel quarter last year Some $311 million invested in VC-backed hi-tech companies in the first quarter of 2015 Up from $232 million in the corresponding quarter
Tel Aviv, Israel -- June 30, 2015 -- Venture capital-backed hi-tech companies (in which at least one investor in a funding round is a venture capital fund) raised $311 million in Israel during the first quarter of 2015, up from $232 million in the corresponding quarter last year and a 28% decrease from $433 million in the previous quarter, according the latest PwC Israel MoneyTree™ Report.
The report also indicates that 31 Israeli high-tech companies raised VC funding in the first quarter of 2015, compared to 40 in the preceding quarter and 38 in the corresponding quarter of last year. The average investment per company in the quarter under review was $10 million, down from $10.8 million in the preceding quarter and up from $6.1 million in the corresponding quarter of last year.
During the current quarter, $260 million, 84% of the total quarterly investment, was invested in 13 deals of over $10M, compared with $330 million (76%) invested in 10 deals in the previous quarter and $121 million (52%) in 7 deals in the first quarter of 2014.
Rubi Suliman, Partner, co-leader of PwC Israel's high-tech practice, One of the most noticeable data in this report is the fact that 84% of the money invested goes to rounds of $10m or more. This directly continues Q4 2014 in which 76% was invested in over-$10M rounds. That result is a bulge in average investment per company in those two quarters.
Those data are very characteristic of markets with very high liquidity levels, which allow growing companies to have much more significant capital rounds than previously and the preference of large funds to make more significant investment rounds in those companies in attempt to create unicorns. While it is clear that different times dictate different investment strategies, it seems that this strategy is in fact a return to the way in which venture capital funds.
Rubi Suliman, PwC Israel's high-tech practice leader
Q 12 0 1 5r e s u l t s IL
Rep
ortMoneyTreeTM
Report
www.pwc.com/il
The PwC Israel MoneyTree™ Report for the first quarter of 2015
Q 12 0 1 5r e s u l t s IL
Rep
ort
MoneyTreeTM
Report
PwC Israel I www.pwc.com/il Q1 2015 MoneyTreeTM Report
Total annual investment 2008 - 2015 (in millions $)
Average investment per company (in millions $)
427
291
393
287
194162
178201
170
206
253 256
342364
198
324
165
255
171
277
196174
225
300
232 233266
433
311
9269 78 81
49 61 5577 72 60 68 74 83 76
4458 48 59 52 52 51 43 42 44 38 37 44 40 31
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
Q2-14
Q3-14
Q4-14
Q1-15
4.6 4.25.0
3.54.0
2.73.2
2.6 2.43.4 3.7 3.5
4.14.8 4.5
5.6
3.44.3
3.3
5.3
3.8 4.0
5.4
6.86.1 6.3 6.0
10.810.0
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
Q2
-14
Q3
-14
Q4
-14
Q1
-15
427
291
393
287
194162
178201
170
206
253 256
342364
198
324
165
255
171
277
196174
225
300
232 233266
433
311
9269 78 81
49 61 5577 72 60 68 74 83 76
4458 48 59 52 52 51 43 42 44 38 37 44 40 31
Q108
Q208
Q308
Q408
Q109
Q209
Q309
Q409
Q110
Q210
Q310
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Total quarterly investment(in million $):
Number of investments
4.64.2
5.0
3.54.0
2.73.2
2.6 2.4
3.4 3.7 3.54.1
4.8 4.5
5.6
3.44.3
3.3
5.3
3.8 4.0
5.4
6.86.1 6.3 6.0
10.810.0
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
Q2
14
Q3
14
Q4
14
Q1
15
Average investment per company (in million $):
Q 12 0 1 5r e s u l t s IL
Rep
ort
MoneyTreeTM
Report
PwC Israel I www.pwc.com/il Q1 2015 MoneyTreeTM Report
% of funds making no investment
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 $80 million in 2 overseas high-tech companies that are not engaged in operations in Israel.
Companies Receiving Grants from the Office of the Israel Chief Scientist
3 companies, representing 7% of all companies raising VC capital in the first quarter of 2015, are supported by the Office of the Israel Chief Scientist. Some $25 million (8%) of total investment funds went to these companies.
Investments made during corresponding quarter (in millions $)
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%
31%34%
45%41%
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
Q2-14
Q3-14
Q4-14
Q1-15
Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015
Total quarterly investment(in million $):
427 194 170 342 165 196 232 311
Number of investments 92 49 72 83 48 51 38 31
-
50
100
150
200
250
300
350
400
450
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%
31%34%
45%41%
Q108
Q208
Q308
Q408
Q109
Q209
Q309
Q409
Q110
Q210
Q310
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
% of funds making no investment
Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015
Total quarterly investment(in million $):
427 194 170 342 165 196 232 311
Number of investments 92 49 72 83 48 51 38 31
-
50
100
150
200
250
300
350
400
450
Total quarterly investment(in million $):
Number of investments
Q 12 0 1 5r e s u l t s IL
Rep
ort
MoneyTreeTM
Report
PwC Israel I www.pwc.com/il Q1 2015 MoneyTreeTM Report
Companies Receiving Grants from the office of the Israel Chief Scientist 2011-2015 (in millions $)
Investments made during corresponding quarters:
6131
44
138
2138
19
11079
5197
150
5228
46 49
21
281 333
154 186 144217
152 167117 123 128 150 180 210 220
384290
18%
9%
22%43%
13% 15%11%
40% 40%29%
43% 50%
22%12%
17%11%
7%
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 Q2-14 Q3-14 Q4-14 Q1-15
Initial
Follow-up
% initial $ of total investment
146
75
53
3526 24
66 65
21
5043
26
45
55
70
322536
2113 13 11
15 1610
14 11 134 5
11 8 83
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Total quarterly investment(in million $):
Number of investments
6131
44
138
2138
19
11079
5197
150
5228
46 49
21
281 333
154 186 144217
152 167117 123 128 150 180 210 220
384290
18%
9%
22%43%
13% 15%11%
40% 40%29%
43% 50%
22%12%
17%11%
7%
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 Q2-14 Q3-14 Q4-14 Q1-15
Initial
Follow-up
% initial $ of total investment
146
75
53
3526 24
66 65
21
5043
26
45
55
70
322536
2113 13 11
15 1610
14 11 134 5
11 8 83
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Total quarterly investment(in million $):
Number of investments
Q 12 0 1 5r e s u l t s IL
Rep
ort
MoneyTreeTM
Report
PwC Israel I www.pwc.com/il Q1 2015 MoneyTreeTM Report
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- 2015 (in millions $)
Total annual Investment by sector 2011 - 2015(% of total $ invested)
Analysis by Leading Technological Sector
0%
34%
43%
0%
22%
0% 0%
15%17%
33%
22%
10%
2%0%
19%
41%
16% 14%
6% 4%
0%
12%
30%
23%
16%13%
3% 3%
8%
27%31%
6%
11% 13%
4%
31%
18%21%
9% 9%
3%
9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Communications andNetworking
Software Internet Semiconductors Life Sciences Cleantech Miscellaneous
Q1 2015 Q4 2014 Q1 2014 2014 2013 2012
Q115
Q414
Q314
Q214
Q114
Q413
Q313
Q213
Q113
Q412
Q312
Q212
Q112
Q411
Q311
Q211
Q111
Total Investments 166624451411251812371166267663588
Number of Companies 143395336161161212111215
0
20
40
60
80
100
120
140
Q115
Q414
Q314
Q214
Q114
Q413
Q313
Q213
Q113
Q412
Q312
Q212
Q112
Q411
Q311
Q211
Q111
Total Investments 107746111595994635634239413143224639
Number of Companies 10131414131514121215131110951417
0
20
40
60
80
100
120
140
Q 12 0 1 5r e s u l t s IL
Rep
ort
MoneyTreeTM
Report
PwC Israel I www.pwc.com/il Q1 2015 MoneyTreeTM Report
Internet Sector
Number of Companies and Total Quarterly investments 2011- 2015 (in millions $)
Semiconductors Sector
Number of Companies and Total Quarterly investments 2011- 2015 (in millions $)
Life Sciences Sector
Number of Companies and Total Quarterly investments 2011- 2015 (in millions $)
Miscellaneous Sector
Number of Companies and Total Quarterly investments 2011- 2015 (in millions $)
Analysis by Leading Technological Sector
Q115
Q414
Q314
Q214
Q114
Q413
Q313
Q213
Q113
Q412
Q312
Q212
Q112
Q411
Q311
Q211
Q111
Total Investments 1341447318369884504653188325722310975
Number of Companies 12714861414131111111798121315
0
20
40
60
80
100
120
140
160
Q115
Q414
Q314
Q214
Q114
Q413
Q313
Q213
Q113
Q412
Q312
Q212
Q112
Q411
Q311
Q211
Q111
Total Investments 095411433034951436224265447
Number of Companies 04344127532524277
0
10
20
30
40
50
60
70
80
90
100
Q115
Q414
Q314
Q214
Q114
Q413
Q313
Q213
Q113
Q412
Q312
Q212
Q112
Q411
Q311
Q211
Q111
Total Investments 68455148134418633122692759566345
Number of Companies 797444547197111071315
0
10
20
30
40
50
60
70
80
Q115
Q414
Q314
Q214
Q114
Q413
Q313
Q213
Q113
Q412
Q312
Q212
Q112
Q411
Q311
Q211
Q111
Total Investments 11290-19139175421819154723
Number of Companies 1120-112422104134126
0
5
10
15
20
25
30
35
40
45
50
Q 12 0 1 5r e s u l t s IL
Rep
ort
MoneyTreeTM
Report
PwC Israel I www.pwc.com/il Q1 2015 MoneyTreeTM Report
Cleantech sector
Number of Companies and Total Quarterly investments 2011- 2015 (in millions $)
Total Investment by sector
Analysis by Leading Technological Sector
Q115
Q414
Q314
Q214
Q114
Q413
Q313
Q213
Q113
Q412
Q312
Q212
Q112
Q411
Q311
Q211
Q111
Total Investments 085141025626221682-22101126
Number of Companies 021324326443-2358
0
10
20
30
40
50
60
70
Communications and Networking ,
0%
Software, 34%
Internet, 43%
Semiconductors, 0%
Life Sciences, 22%
Cleantech, 0%
Q 12 0 1 5r e s u l t s IL
Rep
ort
MoneyTreeTM
Report
PwC Israel I www.pwc.com/il Q1 2015 MoneyTreeTM Report
Early round
Analysis by Investment Round
Number of Companies and total quarterly investments 2011- 2015 (in millions $)
Total annual Investment by Investment Round 2011 - 2015 (% of total $ invested)
Third round
Number of Companies and total quarterly investments 2011- 2015 (in millions $)
32%
39%
25%
4%
26%24%
47%
3%
51%
3%
33%
12%
29%
15%
49%
6%
49%
21%19%
11%
31%
20%
34%
15%
0%
10%
20%
30%
40%
50%
60%
Early Round Third Round Later Round Bridge Loan
Q1 2015 Q4 2014 Q1 2014 2014 2013 2012
Q115
Q414
Q314
Q214
Q114
Q413
Q313
Q213
Q113
Q412
Q312
Q212
Q112
Q411
Q311
Q211
Q111
Total Investments 991136348119217269910075429158766514691
Number of Companies 121713161823922221920272022152926
-
50
100
150
200
250
Q115
Q414
Q314
Q214
Q114
Q413
Q313
Q213
Q113
Q412
Q312
Q212
Q112
Q411
Q311
Q211
Q111
Total Investments 1211024220845929398234421821632149
Number of Companies 765425124466845927
-
20
40
60
80
100
120
140
Q 12 0 1 5r e s u l t s IL
Rep
ort
MoneyTreeTM
Report
PwC Israel I www.pwc.com/il Q1 2015 MoneyTreeTM Report
Bridge Loan
Number of Companies and total quarterly investments 2011- 2015(in millions $)
Total Investment by Investment Round
Later Round
Number of Companies and total quarterly investments 2011- 2015 (in millions $)
Q115
Q414
Q314
Q214
Q114
Q413
Q313
Q213
Q113
Q412
Q312
Q212
Q112
Q411
Q311
Q211
Q111
Total Investments 7920141577255251439565954220521615
Number of Companies 5812776358117851451515
-
50
100
150
200
250
Q115
Q414
Q314
Q214
Q114
Q413
Q313
Q213
Q113
Q412
Q312
Q212
Q112
Q411
Q311
Q211
Q111
Total Investments 1213191328135515142531264621183349
Number of Companies 79141011101812171619161917153035
-
10
20
30
40
50
60
Early Round, 32%
Third Round, 39%
Later Round, 25%
Bridge Loan, 4%
Q 12 0 1 5r e s u l t s IL
Rep
ort
MoneyTreeTM
Report
PwC Israel I www.pwc.com/il Q1 2015 MoneyTreeTM Report
Analysis by Company Development Stage
Seed Stage
Number of Companies and total quarterly investments 2011- 2015(in millions $)
Intermediate stage
Number of Companies and total quarterly investments 2011- 2015 (in millions $)
Total annual Investment by Development Stage 2011 - 2015 (% of total $ invested)
4%
68%
27%
1%
7%
26%30%
37%
9%
51%
34%
5%8%
29%
34%30%
6%
44% 44%
6%8%
45%
31%
16%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Seed/Startup Stage Early stage Expansion stage Later Stage
Q1 2015 Q4 2014 Q1 2014 2014 2013 2012
Q115
Q414
Q314
Q214
Q114
Q413
Q313
Q213
Q113
Q412
Q312
Q212
Q112
Q411
Q311
Q211
Q111
Total Investments 1330122422610172233342929142215
Number of Companies 5567575781535683108
-
5
10
15
20
25
30
35
Q115
Q414
Q314
Q214
Q114
Q413
Q313
Q213
Q113
Q412
Q312
Q212
Q112
Q411
Q311
Q211
Q111
Total Investments 29624482208198292196125170170108249129175139296234
Number of Companies 2430212631343129392942523841365963
-
50
100
150
200
250
300
350
Q 12 0 1 5r e s u l t s IL
Rep
ort
MoneyTreeTM
Report
PwC Israel I www.pwc.com/il Q1 2015 MoneyTreeTM Report
Analysis by Company Development Stage
Later Stage
Number of Companies and total quarterly investments 2011- 2015 (in millions $)
Total Investment by company development stageSplit of the Intermediate stage between early and expansion stage
Q115
Q414
Q314
Q214
Q114
Q413
Q313
Q213
Q113
Q412
Q312
Q212
Q112
Q411
Q311
Q211
Q111
Total Investments 2159172212219324746017120454693
Number of Companies 2517323674872495712
-
20
40
60
80
100
120
140
160
180
200
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q115Q414Q314Q214Q114Q413Q313Q213Q113Q412Q312Q212Q112Q411Q311Q211Q111
Expansion stage
Early stage
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q115Q414Q314Q214Q114Q413Q313Q213Q113Q412Q312Q212Q112Q411Q311Q211Q111
Expansion stage
Early stage
Seed/Startup Stage, 4%
Early stage, 68%
Expansion stage, 27%
Later Stage, 1%
Q 12 0 1 5r e s u l t s IL
Rep
ort
MoneyTreeTM
Report
PwC Israel I www.pwc.com/il Q1 2015 MoneyTreeTM Report
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
Rubi SulimanPartner, Hi-tech leader, PwC IsraelOffice: +972-37954780Email: [email protected]
© 2015 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.
PwC Israel helps organisations and individuals create the value they’re looking for. We’re a member of the PwC network of firms in 157 countries with more than 195,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com/il.
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Kesselman & Kesselman, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
Tamar Yaron-MoldovanManager, Hi Tech Business Development,PwC IsraelOffice: 03-7954572 Email: [email protected]
Rotem Geslevich Head of Hi Tech Business Development ,PwC IsraelOffice: 03-7955092 Email: [email protected]