IVC Research Center and APM & Co. Latest Report, Most Active Israeli Funds of 2020
TEL AVIV, Israel, April 7, 2021 /PRNewswire/ -- In cooperation with the Israeli law firm APM & Co, IVC Research Center presents the 2020 Most Active Venture Capital Funds Annual Report, which analyzes the first investments activity in Israeli tech companies since 2014. Two Israeli VCs, Entree Capital, and F2 Venture Capital ranked 1st with 14 first investments. Insight Partners, American private equity and venture capital fund, ranked second with 13 first investments alongside Israeli Peregrine Ventures and 13 first investments in 2020. South Israel Bridge Fund (SIBF) ranked joint third with the American GoAhead Ventures VC fund, both with 11 first investments in 2020.
Despite the urmoil caused by the global pandemic, the number of first investments in Israeli tech companies soared to a seven-year high. In 2020, IVC recorded 620 first investments, pointing to a comeback to growth compared to a decrease in 2019. In total, Israeli VCs' participation in first investments grew 65% in 2014-2020 compared to a 25% increase of the foreign VCs. The Israeli VC funds in 2020 number of first investments accounted for 45% of all first investments, almost the same as their 46% share in 2019. Furthermore, both foreign and Israeli VCs increased their first investment activity compared to 2019.
According to IVC's data, most of the first investments went to early rounds (Seed and A rounds) as expected. However, in 2020, there was a change in the rate of first investments in the early rounds compared to the last seven years. In the past year, the number of first investments in growth rounds (B and C) and the later rounds (D and Late Rounds) is in line with the overall investment trend in recent years: more investments were routed to later rounds, completing a climb of approximately 82% in 2014-2020. Most of the first investment trends align with investors' positive sentiment towards allocating more capital to later rounds. The number of first investments in later rounds has climbed by about 119% since 2014 and amounted to 10% of total initial investments in 2020, significantly higher compared to just 6% in 2014-2016.
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