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Venture Capital Investments Mr. Yigal Erlich President & CEO, The Yozma Group Chairman, Israel Venture Association. Venture Capital Raised. 3rd Wave. 1st Wave: Establishment of Yozma. 2nd Wave. Source: PriceWaterhouseCoppers. VC firms development over the years. 1993-5.
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Venture Capital Investments Mr. Yigal Erlich President & CEO, The Yozma Group Chairman, Israel Venture Association
Venture Capital Raised 3rd Wave 1st Wave: Establishment of Yozma 2nd Wave Source: PriceWaterhouseCoppers
VC firms development over the years 1993-5 1996-8 1999-01 Average Leading VC Size ($M) 20 80 180-200 No. of Venture Firms 15 40 60
Capital Raised in Public Offerings of Israeli Companies in the US
M&As of Israeli Technology Companies and Foreign Strategic Partners: 1994 - 1997 $1.5B 1998 - 1999 $4.5B 1st Half - 2000 $7.6B
Israeli VC Arena today • Political Risk • Declining Capital Markets • Uncompetitive Tax Policy • Mature VC market • Globalization of VC’s
Uncompetitive Tax Policy • Tax on foreign Investors • Double tax on Israeli related companies for U.S investors • Double tax on some European Investors Uncompetitive VC Market Increased Carried perception