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

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

 

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Source: The Edge Singapore

Centurion Corporation said it has agreed to acquire a piece of land located at Seberang Perai Selatan in Penang, Malaysia, for RM6.3 million ($2.45 million). This marks the group’s first acquisition in another state of Malaysia outside o ...
Source: The Edge Singapore   Full article at: The Edge Singapore Aug 12 2014, 9:21am CDT
 


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