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A Quantitative Outlook of the Israeli High-Tech
Shmulik Shelach – Director of Research & Technology, [email protected]
A Quantitative Outlook of the Israeli High-Tech | November 2019
The Importance of Data in the Start-Up Arena
• Asymmetry data flow between the companies, the market, and the service providers.
• Most of the data points suffer from inherent mistakes.
• Little is known about what is cooking in the R&D basements of the Tech behemoths.
• High Risk/Reward – Good information is highly valuable.
• Aggressive competition for the best companies and technologies.
2A Quantitative Outlook of the Israeli High-Tech | November 2019
Numbers of the Israeli Tech Landscape:
• Number of Active Start-Ups: ~8,700
• Number of Multinational Corp: 362
• Amount of Investors (of all kind): ~2,300
• Capital raised by Israeli start-ups in 2019 (Mid November): $7.5 b
• Number of Exits since 2010: 1,213
• Capital Raised by Israeli VCs since 2010: $13.6 b
• Number of Entrepreneurs: ~23k
3A Quantitative Outlook of the Israeli High-Tech | November 2019
The Israeli Start-Ups Landscape – Overall lookup
59 88 78 49 59 37 29 8 2
338372
514 580
828 878 937917
693
264
610
710
7 73
6
3
373
431
555 510
493 406205 88
18
3
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Start-Up Companies Status
Acquired Active Private Active Public Ceased
4A Quantitative Outlook of the Israeli High-Tech | November 2019
Investment Trends In Israeli tech companies 2014 - 2019
5A Quantitative Outlook of the Israeli High-Tech | November 2019
Investment Trends 2014 – 2019: Seed Deals, Non-VCs Backed
6A Quantitative Outlook of the Israeli High-Tech | November 2019
Investment Trend – Deals size and Deals Types
23%20%
17%14%
16%
11%
7%
27%26%
33%
38%39%
49%
57%
2013 2014 2015 2016 2017 2018 2019
Per
cen
tage
-o
f th
e to
tal A
mo
un
ts
Axis Title
Investments Amounts Patterns
< $5M(of Total $m) >$30m (of Total $m)
7A Quantitative Outlook of the Israeli High-Tech | November 2019
Exits Numbers and Valuations: 2015 – H1/2019
$8,582 $9,873 $8,368 $13,125 $7,579
138127
136
121
65$62.19
$77.74
$61.53
$108.47
$116.59
0
20
40
60
80
100
120
140
160
$-
$2,0 00
$4,0 00
$6,0 00
$8,0 00
$10 ,000
$12 ,000
$14 ,000
2015 2016 2017 2018 H1/2019 Exits $m # of Deals Average Deal $m
8A Quantitative Outlook of the Israeli High-Tech | November 2019
Exits Numbers and Valuations - Analysis by Deal Size
7491 88
75
31
23
12 13
14
6
19 12 9
10
5
144 15
13
15
55
8
4
3
22
2
1
5
11
1
4
0
20
40
60
80
100
120
140
160
2015 2016 2017 2018 H1/2019<$20m $20m-$50m $50m-$100m $100m-$250m $250m-$500m $500m-$1000m $1000m-$5000m
9A Quantitative Outlook of the Israeli High-Tech | November 2019
Exits Numbers and Valuations - Exit Ratios
Average Exit Ratio 2015-H1/2019 Average Exit Ratio: VC-backed vs. Non-VC backed 2015-H1/2019
$4,786
$4,242
$5,579
$4,096 $3,859
$1,099 $1,089 $1,555 $1,407
$985
4.35
3.89
3.59
2.91
3.92
0.0 0
0.5 0
1.0 0
1.5 0
2.0 0
2.5 0
3.0 0
3.5 0
4.0 0
4.5 0
5.0 0
$-
$1,0 00
$2,0 00
$3,0 00
$4,0 00
$5,0 00
$6,0 00
2015 2016 2017 2018 H1/2019
Exits $m Capital Raised $m Average Exit Ratio
3.37 3.11 3.00
2.79
3.75
9.41
5.89
5.01
3.31
13.65
0.0 0
2.0 0
4.0 0
6.0 0
8.0 0
10. 00
12. 00
14. 00
16. 00
2015 2016 2017 2018 H1/2019
VC Backed Exits Non-VC Backed Exits
10A Quantitative Outlook of the Israeli High-Tech | November 2019
Multinational Corporation Activity - # of R&D Centers by Years
220
241249
266
300
334
354 351 351362
28 30 2432
39 44 40
14 18 23
0
50
100
150
200
250
300
350
400
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
No. of Active MNC's No. of Established MNC's
11A Quantitative Outlook of the Israeli High-Tech | November 2019
Multinational Corporation Activity: # CVC Entry
58
31
46
104
0
20
40
60
80
100
120
Pre-1980 1980s 1990s 2000s 2010s
12A Quantitative Outlook of the Israeli High-Tech | November 2019
Multinational Corporation Activity: # Corporate Accelerators Established
2
5
9
17
14
0
2
4
6
8
10
12
14
16
18
2010-1 2012-3 2014-5 2016-7 2018-9E
13A Quantitative Outlook of the Israeli High-Tech | November 2019
Investors Preferences -Investments ($m) by investors type
2,603 , 47%
863 , 16%
596 , 11%
506 , 9%
469 , 8%
418 , 8%
40 , 1%
VC Funds
PE Funds
Corporate VCs
Investment Companies
Private Investors
Corporates
Accelerators & Incubators
14A Quantitative Outlook of the Israeli High-Tech | November 2019
Investors Preferences - Investors Participate
3.083.35 3.30 3.43
3.66 3.754.02
2013 2014 2015 2016 2017 2018 Q1-Q3/2019
Average # of Investors per Deal
# of Investors per Deal
335
457
530 532579 605
320256
340396
426
497
589
439
2013 2014 2015 2016 2017 2018 Q1-Q3/2019
1st/Follow-On Investments By VCs Per Year
# of First VC Investments # of Follow-on VC Investments
15A Quantitative Outlook of the Israeli High-Tech | November 2019
Investors Preferences: # of 1st investments by Investors Type
126
163
191
217 216
176
88
12 1232 30
59 55
41
69
100
133
158
194
211
152
2013 2014 2015 2016 2017 2018 Q1-Q3/2019
Investments in Israeli AI Companies
Angels Corporate VCs VC Funds
49
64
87
94
53
46
28
4 6
1821
14
31
17
35
52
67 68
75
102
51
2013 2014 2015 2016 2017 2018 Q1-Q3/2019
Investments in Israeli Cyber Companies
Angels Corporate VCs VC Funds
16A Quantitative Outlook of the Israeli High-Tech | November 2019
Investors Preferences: # of 1st investments by Investors Type
69
9894
125
77
44
1511 1217 15
26
34
19
32
5561
76 77 75
42
0
20
40
60
80
100
120
140
2013 2014 2015 2016 2017 2018 Q1-Q3/2019
Investments in Israeli IoT Companies
Angels Corporate VCs VC Funds
74
114
76
98
88
64
29
5 6 9 14 16 17 17
33
61 60
82
71
86
45
0
20
40
60
80
100
120
2013 2014 2015 2016 2017 2018 Q1-Q3/2019
Investments in Israeli FinTech Companies
Angels Corporate VCs VC Funds
17A Quantitative Outlook of the Israeli High-Tech | November 2019
