Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

Filed under: News

 

Exit! Mergers and Acquisitions of Israeli VC-Backed Companies Reaches Decade High

Jan 8 2014, 8:11am CST | by

10 Updates
Exit! Mergers and Acquisitions of Israeli VC-Backed Companies Reaches Decade High
Photo Credit: Forbes
 
 

Comments

Recommend Your Tweet as Top Tweet:

Full Story

Exit! Mergers and Acquisitions of Israeli VC-Backed Companies Reaches Decade High

Last month, I wrote about how Israeli startups are contending with growing up.

Instead of selling out quickly, Israeli startups are choosing to scale up . That means, the nature of their exits will be different. In the past, we saw dozens of companies sell to global tech giants for $20 million to $40 million.

According to a new report by the IVC Center,  the total value of  venture-backed mergers and acquisitions of Israeli firms in 2013 soared to a decade high. A total of 35 companies funded by venture capital exited for a total of $4.2 billion.

The $4.2 billion of VC-backed exits is the majority of the $6.64 billion raised in total M&A and IPOs during the fiscal year.

Returns are getting larger and exits fewer, less frequent

Google's $1 billion acquisition of social driving app, Waze,and Wix.com’s IPO on Nasdaq helped contribute to the upward-

trending numbers. Both companies had rebuffed earlier buyout offers to sell out and move operations internationally, choosing instead to build larger companies headquartered in Israel.

The average exit for Israeli companies that raised venture capital hit $120 million this year, easily surpassing the 10-year mean of $55 million. Fewer deals are getting done — the ones that do close are for greater sums, as Israeli startups are focusing more on growing their businesses in lieu of quicker payouts.

That means people who invest in Israeli startups are making more money, too. According to the same report, the average equity ratio for VC-backed companies was 4.6 .

Older, more mature firms = more IPOs this year

By most accounts, 2013 was a good year for Israeli investors and entrepreneurs. As the scaling up trend continues, it also means that the pipeline of Israeli companies gearing up for IPOs is also growing.

According to the WSJ, 2014 is shaping up to be a banner year for Israeli IPOs :

Companies that are often mentioned as following in Wix.com’s footsteps include content recommendation firm Outbrain, software distributor ironSource, and advertising technology firms Matomy and Kenshoo. Mobileye, which develops a vehicle crash-prevention system, is also considered a strong contender, as are cybersecurity firms ForeScout and CyberArk.

Top Israeli technology/finance stories of 2013

Here’s a good summary of the major Israeli tech news that went done this past year.

[ View the story "Startup Nation 2013: Top high-tech stories out of Israel" on Storify ]

2014 looks like it’s going to be a very busy, successful year for Israeli tech firms.
Who do you think is going to IPO first? What’s going to be the big story this year? Drop a comment./>

Source: Forbes

 

You Might Also Like

Updates


Sponsored Update

Update: 10

MRCB, Nusa Gapurna and PKNS settle suit over RM3 billion PJ Sentral project

Source: Malaysia Today

(The Malaysian Insider) – Malaysian Resources Corp Bhd (MRCB), Nusa Gapurna Development Sdn Bhd (NGD) and PKNS Holdings Sdn Bhd have reached an out-of-court settlement over the owners ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 21 2014, 2:53am CDT
 


Advertisement


Update: 9

Story behind Syed Mokhtar’s ‘RM2.25 billion tax-exempt’ Bernas deal revealed, says PKR MP

Source: Malaysia Today

(The Malaysian Insider) – An innocuous written reply in Parliament has provided a peek into the cosy relationship between the Najib administration and Malaysia’s best-known businessman, Tan Sri Syed Mokhtar... REA ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 15 2014, 12:56pm CDT
 

More From the Web

Update: 8

Constitutional monarchy still murky concept

Source: Malaysia Today

After the RM4.5 billion land sale, the Sultan of Johor secured a 15% stake in MOL Access Portal (MOL) for RM396 million and took a 20% stake ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 14 2014, 12:37am CDT
 

Update: 7

Sultan of Johor’s RM4.5 bil backlash?

Source: Malaysia Today

49th Karlovy Vary International Film Festival
Has Sultan Ibrahim of Johor’s succession of big money deals over the last six months caused the tide of public opinion to turn against Johor’s royal palace? KiniBiz examines the... READ M ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 11 2014, 8:49am CDT
 

Update: 6

Putrajaya denies carpet dealer given interest-free loan

Source: Malaysia Today

Eileen Ng, The Malaysian Insider Putrajaya today refuted allegations that Bank Rakyat had allowed carpet dealer Deepak Jaikishan to repay a RM32 million loan without interest following interve ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 11 2014, 5:44am CDT
 

Update: 5

Malaysia Spends Over $9 million on MH370 Hunt: Report

Source: NDTV

49th Karlovy Vary International Film Festival
Malaysia has so far spent about RM27.6 million (over $9 million) on search operations for missing Malaysia Airlines flight MH37 ...
Source: NDTV   Full article at: NDTV Jun 9 2014, 3:12am CDT
 

Update: 4

Bill for Kidex likely to soar to RM3.4b

Source: Malaysia Today

The original RM2.4 billion tag on the proposed highway did not take into account the cost of acquiring the land mostly in the urban areas, claims an assemblywoman Fab ...
Source: Malaysia Today   Full article at: Malaysia Today Jun 9 2014, 2:51am CDT
 

Update: 3

MACC: No elements of graft in Bank Rakyat’s loan to businessman

Source: Malaysia Today

BET AWARDS '14 - Red Carpet
(Bernama) – The Malaysian Anti-Corruption Commission (MACC) found no elements of corruption in Bank Rakyat’s RM32 million interest free loan to a businessman. MACC in a statement today said initial.. ...
Source: Malaysia Today   Full article at: Malaysia Today May 31 2014, 9:33am CDT
 

Update: 2

IHH Healthcare posts 25% rise in 1Q earnings to $62 mil

Source: The Edge Singapore

IHH Healthcare Berhad announced that revenue grew by 8% y-o-y to RM1.8 billion ($703 million) for 1Q2014 ended March, as earnings grew 25% YoY to RM159.1 million. R ...
Source: The Edge Singapore   Full article at: The Edge Singapore May 29 2014, 11:29am CDT
 

Update: 1

Hasan Malek evades media over RM32 million Bank Rakyat loan scandal

Source: Malaysia Today

Elizabeth Zachariah, The Malaysian Insider The minister embroiled in the RM32 million Bank Rakyat loan scandal refused to take questions from the press today at an eve ...
Source: Malaysia Today   Full article at: Malaysia Today May 28 2014, 11:42pm CDT
 

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Comments

blog comments powered by Disqus

Latest stories

2014 MLB Home Run Derby Contestants Announced
2014 MLB Home Run Derby Contestants Announced
Major League Baseball has announced the initial eight contestants in the 2014 Gillette Home Run Derby which will be on July 13 at Target Field in Minneapolis.
 
 
Candace Cameron Bure, Andrea Barber Steal Stamo&#039;s Phone At Coulier&#039;s Wedding
Candace Cameron Bure, Andrea Barber Steal Stamo's Phone At Coulier's Wedding
Candace Cameron Bure and Andrea Barber's prank earned the attention of social media.
 
 
New leaked iPhone 6 Parts Reaffirms huge Redesign
New leaked iPhone 6 Parts Reaffirms huge Redesign
It’s not exactly a mystery at this point: Apple’s next-generation iPhone 6 and “iPhone Air” phablet will feature a huge redesign that represents a big departure from its current iPhone 5s and 5c models. According to...
 
 
Now you have another reason to avoid Samsung smartwatches
Now you have another reason to avoid Samsung smartwatches
Android Wear has the mobile development community very excited, but the hardware might not be ready for primetime quite yet. Reports have begun to circulate stating that the charging mechanism on Samsung...