Surge in High-Tech Investments and Acquisitions

1. Israel’s unemployment has declined to 6% in February, 2011, compared with 6.2% in December 2010 and 7.7% in December 2009 (April 29, 2011). The Houston-based ATP Oil & Gas, which specializes in deep off-shore drilling, received a license to drill in Israel (Globes, April 15).

2. The NY-based OrbiMed, the largest healthcare investment firm, established a $200MN Israel-dedicated fund, in order to leverage cutting-edge Israeli innovations (Globes, April 7). The NY-based Yorkville Capital intends to invest $100MN in Israeli companies during 2011. Last week Yorkville invested $50MN in Israel’s Elbit Imaging (Globes, April 5).

3. The Irvine-based Broadcom acquired Israel’s Provigent for $340MN, Broadcom’s 8^th Israeli acquisition since November 2000 – VisionTech for $250MN, Dune Networks – $178MN, Pecello – $86MN, Siliquent – $84MN, Octalica – $31MN, SighticVista – $15MN and MStream – $10MN (Globes March 22). The San Jose-based Align Technology acquired Israel’s Cadent for $190MN (Globes, March 31). Santa Clara-based Internet security giant, Mcafee, acquired Israel’s Sentrigo for $35MN (Globes March 24). Boston Scientific acquired Israel’s S.I. Therapies for $20MN – $5MN in cash and the balance according to milestones (Globes, April 5). The Seattle-based Getty Images acquired Israel’s PicScout for $20MN (Globes, April 28). India’s Ybrant acquired Israel’s PicApp for $10MN, its 2^nd Israeli acquisition – Oridian for $15MN in 2007 (Globes, April 8).

4. A 39% increase in high-tech investments during the 1^st quarter of 2011 – $479MN invested in 140 companies – the best quarter in two years, compared with $234MN in 91 companies during the 1^st quarter of 2010. 28% invested by Israeli investors (Globes, April 14).

5. The London-based Sam Capital and the Minneapolis-based Piper Jaffray participated in a $60MN investment in Israel CleanTech Ventures (Globes, April 13). The Luxembourg-based Mangrove Capital Partners, the Menlo Park-based Benchmark Capital and Bessemer Venture Partners, the Palo Alto-based DAG Ventures and the NY-based Insight Venture Partners participated in a $40MN round by Israel’s Weeks (Globes, March 30). The Hong Kong-based Pacific Technology Fund and the Menlo Park-based Bessemer participated in a $26MN 4^th round by Israel’s Altair (Globes, April 11). The Boston-based Spark Capital and the Menlo Park Bessemer and Redpoint Ventures participated in a $20MN round by Israel’s AdaptTV (Globes, March 30). The Menlo Park-based Draper, Fisher, Jurvetson and the Menlo Park-based Kleiner Perkins co-led an $18MN round by Israel’s agro-tech Kiima (Globes, April 6). The UK-based Lewis Trust Group participated in an $18MN round of private placement by Israel’s OrSense (Globes, May 3). The Boston-based Globespan and the Menlo Park-based Sequoia Capital participated in a $15MN 3^rd round by Israel’s Kaminario (Globes, May 3). Motorola Ventures, the Needham-based Stata Ventures, the Tulsa-based Argonaut Private Equity, the San Jose-based Stryker Endoscopy and the Japan-based NTT invested $15MN in Israel’s Amimon (Globes, March 25). Germany’s medical giant, Merck committed 10MN Euro to Israel’s biomed incubator in Yavneh (Globes, March 31). The Menlo Park-based Benchmark, the Palo Alto-based DAG Ventures and the Menlo Park-based Opus Ventures participated in a $12MN 4^th round by Israel’s Clarizen (Globes, May 2). The S.F.-based Saints Capital led a $12MN 5^th round by Israel’s AngioScore, which is located in California (Globes, April 28). The NY-based OrbiMed invested $10.5MN in Israel’s SMT (Globes, April 4). The London, NY and Sidney-based Generation CleanTech Investment Management invested $10MN in a 3^rd round by Israel’s Tigo Energy, its second Israeli investment – $10MN in GreenRoad in 2010 (Globes, April 14). The Waltham-based Northbridge Venture Partners, the Boston-based Egan Venture Capital and the Deerfield-based Vernon & Park Capital invested $4MN in a 3^rd round by Israel’s CurrenSee (April 21). The Boston-based Schooner Capital participated in a $4MN 1^st round by Israel’s Zixi (Globes, April 13). The Menlo-Park Benchmark and the Bellevue-based Trilogy Partners and Ignition Partners invested $4MN in a 4^th round by Israel’s Xeround (Globes, April 6). Eric Schmidt, Google’s outgoing CEO invested $1MN in Israel’s EyeView (Globes, May 2).

Straight from the Jerusalem Boardroom #248
https://bit.ly/3u29k9g

Foreign investment in Israel’s high-tech companies surged to new heights in the 1^st quarter of 2021 – $5.7bn in 172 deals – which is up 89% over the impressive 4^th quarter of 2020 and double the volume of the 1^st quarter of 2020.

2020 was the first year of surpassing $10bn in capital raised by the Israeli high-tech sector from investors in the US, Asia and Europe, who trust the maturity of Israel’s brain power. Investments in Israeli companies more than tripled in six years, reflecting the effective response by Israeli startups to the technological, medical, pharmaceutical, educational, social and digital challenges posed by Covid-19.

Israel’s economic performance in defiance of Covid-19 is presented by Dr. Adam Reuter, the Chairman and Founder of “Financial Immunities,” Israel’s largest financial-risk management firm, and the co-author of Israel – Island of Success:

Israel has led the globe in the rapid administration of Covid-19 vaccinations due to effective negotiations with Pfizer and an efficient, country-wide medical infrastructure.
Israel is the second lowest among OECD countries in the number of Covid-19 deaths per number of Covid-19 cases: 0.7% compared to the 2.3% OECD average. Israel features a young population (median age of 30 compared to the OECD’s 42) and an effective country-wide medical infrastructure, including top level HMOs and hospitals.
Israel is ranked 12^th from the bottom among the 37 OECD countries in the number of deaths per million inhabitants: 645 compared to 1,145 OECD average.
The International Monetary Fund’s 2025 GDP growth forecast for OECD countries: Israel – 4%, OECD average – 2.2%, US – 1.8%, Australia – 2.5%, Ireland – 2.6%, France and Canada – 1.7%, the UK – 1.6%, Germany – 1.2%, etc.
Israel’s 2020 GDP was reduced by 2.5%, compared to the OECD average reduction of 4.1%, South Korea – 1%, Norway – 0.8%, Australia – 2.6%, US – 3.5%, Japan – 4.8%, Germany – 5%, France – 8%, the UK – 10% reduction, etc. GDP growth was recorded in New Zealand – 2.4% and Ireland – 3.5%.
In 2020, Israel was ranked 20^th among the 37 members of the OECD in terms of GDP per capita, featuring $43,000 (GDP – $408bn), ahead of Japan, Italy and Spain, and very close behind the UK ($44,000) and France ($45,000).
Israel’s debt-to-GDP ratio increased from 60% in 2019 to 72% in 2020, compared to the OECD’s average increase from 66% to 82%. The 2020’s debt-to-GDP ratio was 266% in Japan, Italy – 161%, the US – 131%, Germany – 73%, etc.
Israel’s foreign exchange reserves-to-GDP ratio of 41% (3^rd among the OECD countries) attests to its financial stability, and Israel’s capability to raise foreign credit promptly in a cost-effective manner. Israel’s foreign exchange reserves in March 2021 – $186bn.
During the past decade, Standard and Poor (S&P) accorded Israel a positive credit rating trend, unlike the negative trend for the G-7 countries. In 2020, notwithstanding Covid-19, Israel’s credit rating (S&P) remained at AA.
Some 380 global high-tech giants operate in Israel, including Microsoft, Amazon, IBM, Intel, Cisco, Apple, Verizon, Applied Materials, Dell, HP, Kodak, Oracle, Philips, SAP, Medtronics, GM, eBay, GE, etc. Israel leads the world in the ratio of research and development investment to GDP: 4.9%. 85% of this investment comes from the business sector.

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