Israeli high-tech companies raise record amount in first half of 2019

In the second quarter, VC-backed deals notched a record $1.81 billion in 73 deals, accounting for 78% of the total amount raised in the quarter.

JULY 18, 2019 11:32

Adv. Shmulik Zysman (photo credit: MARC ISRAEL SELLEM/THE JERUSALEM POST) — Adv. Shmulik Zysman

(photo credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)

In the first half of 2019, Israeli high-tech companies raised $3.9 billion in 254 deals, an all-time record, and in the second quarter of the year, $2.32 billion was raised – the highest quarterly amount since 2013. The findings, released by IVC Research Center and the international law firm of international law firm of ZAG/Sullivan, show that the figure was boosted by 10 mega-deals – each over $50 million – totaling $1.26 billion. The large transactions included a PIPE (Private Investment in Public Equity) round of $186 million raised by Elbit Systems, and $110 million raised by Cellebrite Mobile, post-acquisition by Sun Corp. The three largest Q2 deals totaled $670 million, including $300 million raised by Lemonade, $250 million raised by Monday, and $120 million by Sentinel Labs.

In the second quarter, VC-backed deals notched a record $1.81 billion in 73 deals, accounting for 78% of the total amount raised in the quarter. The amount raised by revenue growth companies in VC-backed deals grew dramatically to $1.12 billion. In the first half of the year, VC-backed deals accounted for $3.16 billion in 148 deals, almost double the amount raised in the first half of 2018.

Adv. Shmulik Zysman, Managing Partner & high-tech industry leader ZAG/Sullivan said, “Just when we thought the investment growth in the first quarter of 2019 had broken every record, along came the second quarter and registered the most significant leap in the total amount raised in the last six years.”

Israeli high-tech growth stage companies – companies in initial revenue and revenue growth stages – were exceptionally active in the second quarter of 2019. These companies raised $2.02 billion in 70 deals—the highest total amount since 2013. Deals larger than $20 million dominated the capital raising activity in the second quarter of this year., with $1.79 billion in 29 deals, compared to $932 million in 18 deals in the same period during the previous year. Information technology and software companies excelled in the second quarter of 2019, raising $1.02 billion in 49 deals—the highest quarterly amount since 2013.