Venture Capital Venture Capital Investments Investments Mr. Yigal Erlich President & CEO, The Yozma Group Chairman, Israel Venture Association.

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  • Venture Capital Investments

    Mr. Yigal Erlich President & CEO, The Yozma GroupChairman, Israel Venture Association

  • Venture Capital Raised1st Wave:Establishmentof Yozma2nd Wave3rd WaveSource: PriceWaterhouseCoppers

    Chart1

    250250

    374374

    156156

    397397

    727727

    688688

    16171617

    &A

    Page &P

    $M

    Sheet1

    19915858

    1992160160

    1993250250

    1994374374

    1995156156

    1996397397

    1997727727

    1998688688

    199916171617

    Sheet2

    Sheet3

  • 1993-5Average Leading VC Size ($M)20No. of Venture Firms151996-880401999-01180-20060VC firms development over the years

  • Source: PriceWaterhouseCoppers

    Chart1

    240190

    340260

    436575

    8401440

    VC investments

    Other

    $M

    Chart2

    0.5581395349

    0.5666666667

    0.4550898204

    0.4459459459

    0.4336917563

    0.4081632653

    0.3684210526

    VC share in the Investments

    Chart3

    240190

    340260

    436575

    8591486

    VC investments

    Other

    Distribution of Capital Raised by H/T Companies by Character of Investor ($M)

    Sheet1

    19971998Q1-99Q2-99Q3-99Q4-99Q1-00

    430600167222279343570

    2403407699121140210

    19026091123158203360

    199719981999Q1-Q3/2000

    43060010112280199719981999Q1-Q3/2000

    VC investments240340436859VC investments240340436859

    Other1902605751486Other1902605751486

    19971998Q1-99Q2-99Q3-99Q4-99Q1-00

    56%57%46%45%43%41%37%

    1997199819992000 (F)

    VC investments240340436840

    Other1902605751440

    Sheet2

    Sheet3

  • Capital Raised in Public Offerings ofIsraeli Companies in the US

    Chart1

    27800

    351136

    461744

    672725

    833469

    933974

    944275

    Cumulative money raised ($M)

    No. of COs

    NASDAQ public offering of Israeli companies

    Chart2

    58

    160

    342

    374

    156

    397

    727

    688

    1617

    Venture Capital Raised ($M)

    Chart3

    1024

    352

    2095

    53413

    1756

    1445

    90711

    &A

    Page &P

    Money raised

    Number of companies

    $M

    Capital Raised in Public Offerings of Israeli VC backed Companies in the US

    Chart4

    52917

    33610

    60816

    98231

    74322

    50512

    201619

    &A

    Page &P

    Money raised

    Number of companies

    $M

    Capital Raised in Public Offeringsof Israeli Companies in the US

    Chart5

    35336

    209608

    534982

    175743

    144505

    9072016

    In total: during the past 7 years more than 100 Israeli companies raised ~$6B ; 40% of them were venture-backed

    Venture Backed

    All

    $M

    Sheet1

    Cumulative Money raised ($M)Number of companiesYear

    800271993

    1136351994

    1744461995

    2725671996

    3469831997

    3974931998

    427594Q1/1999

    Capital raised in Public Offerings if Israeli Companies in the US (1993-99)

    Venture Backed

    Money raisedNumber of companiesYearAllVenture BackedYear

    102419935291021993

    3521994336351994

    209519956082091995

    5341319969825341996

    175619977431751997

    144519985051441998

    90711199920169071999

    2106465719

    All0.3682461969

    Money raisedNumber of companiesYear

    529171993

    336101994

    608161995

    982311996

    743221997

    505121998

    2016191999

    5719127

    M&A involvong Israeli Technology Companies (taken from Selected List)

    20001999199819971996

    635229671572838593

    4539

    Venture Capital Raised

    581991

    1601992

    3421993

    3741994

    1561995

    3971996

    7271997

    6881998

    1,6171999

    4519

    Sheet2

    Sheet3

  • M&As of Israeli Technology Companies and Foreign Strategic Partners:1994 - 1997$1.5B 1998 - 1999 $4.5B 1st Half - 2000 $7.6B

  • Source: PriceWaterhouceCoopers - MoneyTree

    Chart1

    481

    285

    90

    93

    21

    30

    Investments by Industry (1999, $1B)

    Chart3

    88

    50

    42

    34

    17

    21

    Investments by Industry (1998, 252 Deals)

    Sheet1

    millions

    Software481

    Communications285

    Medical Devices90

    Computers & Electronics93

    Biotechnology21

    Other30

    # of deals]

    Software88

    Communications50

    Medical Devices42

    Computers $ Electronics34

    Biotechnology17

    Other21

    Sheet1

    0

    0

    0

    0

    0

    0

    Software Communications Medical Devices Computers & Electronics Biotechnology Other

    Investments by Industry ($M)

    Sheet2

    Sheet3

    Jump to first page

    Source: PriceWaterhouseCoppers

    Chart1

    424919

    804830

    7411627

    10111763

    149323117

    25717698

    566.4252.799.1

    Communications

    Internet

    Software

    Millions of Dollars

    Capital Raised by Israeli High-Tech Companies

    Sheet1

    Q1/99Q2/99Q3/99Q4/99Q1/00Q2/00Q3/00

    Communications428074101149257566.4

    Internet4948116117323176252.7

    Software193027631179899.1

    Communications199719981999Q1-Q3/2000

    91155297972.4

    Sheet2

    Sheet3

  • Israeli VC Arena todayPolitical RiskDeclining Capital MarketsUncompetitive Tax PolicyMature VC marketGlobalization of VCs

  • Uncompetitive Tax PolicyTax on foreign InvestorsDouble tax on Israeli related companies for U.S investorsDouble tax on some European Investors

    Uncompetitive VC MarketIncreased Carried perception