Thursday, April 30, 2015
Israeli startup scene on a roll
In the last few years, Israeli internet startups such as Waze and Wix have been all the rage, and that trend is not abating any time soon: With $343 million raised, the country’s Internet sector experienced its most successful fundraising quarter ever in Q1. According to Koby Simana, CEO of IVC Research Center, the high funding rounds of Taboola ($117 million) and Quixey ($60 million) largely contributed to this quarter’s success, as well as the maturation of the sector, with investors willing to raise larger average rounds. In a statement, he explained, “Up to a year ago we were accustomed to seeing average financing rounds of $3 million to $4 million, in the Internet sector.
In recent quarters though, we’ve been observing a distinct rise in the average Internet financing round. This trend is even more evident among growth stage Internet companies for which the average deal jumped from $6 million about a year ago to $16.3 million in the first quarter of 2015.” And during the third week of January, there was a particularly hot week for startup funding: Tech companies raised $140 million in funding and there were $770 million in acquisitions.
The only bad news from all this? With all market ups must come downs, and it seems as if it’s only a matter of time before the Israeli tech scene’s bubble will burst. Considering Israeli startups rebounded quickly after the summer war with Hamas, it will realistically come from international forces rather than national ones.