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Israeli VC Indicator Survey
Data from Deloitte Brightman Almagor Zohar, June 12, 2010, (70 participants)


    Highlights
    Expectations regarding market improvements begin to decline

    Forecasts of new investments reflect cautious optimism

    Increasing optimism geared towards 2010, as the year that Israeli

    IPO’s will resume on NASDAQ

    Geopolitical issues raise concerns amongst venture capitalists

    Treasury Department should focus on encouraging

           1) Seed investments
           2) Encouraging Israeli institutions to take a larger role in high-tech
                     investments


1     Confidential
VC Fundraising Activity will become:



    Extremely difficult            30%


    Difficult                      47%


    Remain the same (i.e. tough)   23%


    Easier                   A Big Fat Zero!!




2     Confidential
Main Investment Gap in the Israeli Start-up Industry?




                    Seed:           47%

                    First round:    30%

                    Second round:   13%

                    Mezzanine:      10%

                    No gap:         0% (!!)




 3   Confidential
EXITS



    72% believe that the next Israeli IPOs on NASDAQ will happen

       this year.

    Additional optimism was unveiled by the fact that 77%

    of surveyed participants claim that merger and acquisition

    activity is ramping up. Despite being only 1% higher than

    the previous quarter and 15% lower than the last quarter

    of 2009, recent numbers clearly reflect the apparent

turnaround since the inception of market turmoil.



4      Confidential

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“It might work if you do it this way…"

  • 1. Israeli VC Indicator Survey Data from Deloitte Brightman Almagor Zohar, June 12, 2010, (70 participants) Highlights Expectations regarding market improvements begin to decline Forecasts of new investments reflect cautious optimism Increasing optimism geared towards 2010, as the year that Israeli IPO’s will resume on NASDAQ Geopolitical issues raise concerns amongst venture capitalists Treasury Department should focus on encouraging 1) Seed investments 2) Encouraging Israeli institutions to take a larger role in high-tech investments 1 Confidential
  • 2. VC Fundraising Activity will become: Extremely difficult 30% Difficult 47% Remain the same (i.e. tough) 23% Easier A Big Fat Zero!! 2 Confidential
  • 3. Main Investment Gap in the Israeli Start-up Industry? Seed: 47% First round: 30% Second round: 13% Mezzanine: 10% No gap: 0% (!!) 3 Confidential
  • 4. EXITS 72% believe that the next Israeli IPOs on NASDAQ will happen this year. Additional optimism was unveiled by the fact that 77% of surveyed participants claim that merger and acquisition activity is ramping up. Despite being only 1% higher than the previous quarter and 15% lower than the last quarter of 2009, recent numbers clearly reflect the apparent turnaround since the inception of market turmoil. 4 Confidential