Start-Up Nation topped the charts in 2013.
The value of all successful exits in the Israeli technology market in 2013 reached a total of $7.6 billion, according to PwC Israel (PDF; in Hebrew). At $170 million, the value of the average exit was the highest it has been over the last ten years. These exits included M&A deals worth $6.45 billion—representing a 16% annual growth—with an average of $859 million per deal (the three largest deals totaled $2.6 billion); and IPOs worth $1.2 billion, with an average IPO of $198 million. The leading sectors were life sciences and the Internet.
Research firm IVC also reports that the year 2013 was the strongest for VC-backed exits in the past decade, with proceeds 91% higher than the 10-year $2.2 billion average. IVC counts 35 VC-backed exits (where at least one venture capital fund was involved as a pre-exit investor) in 2013 valued at $4.2 billion out of a total of 80 exits valued at $6.64 billion. Check out IVC’s interactive 10-Year Exits Analytics Dashboard, produced in collaboration with SiSense.
Geektime notes a few new developments in 2013. There have been more acquisitions done by Israeli firms, acquiring both Israeli and foreign companies; Israel has shown that contrary to its hardware/enterprise image it can also do “consumer” (as in the two almost-$1-billion exits of 2013, Wix and Waze); and agritech (see Evogene in last month’s report) emerging as a promising new sector, possibly with the most untapped potential (hoping for another $1 billion deal, as in Monsanto buying the Climate Corporation).
In terms of fund raising by Israel-based venture capital firms, 2013 was less successful than the previous two years, according to an IVC-KPMG report. 13 funds raised $526 million in 2013, almost 28 percent below the $725 million raised by 14 Israeli VC funds in 2012. KPMG’s Ofer Sela explains this trend as the price of success—a substantial number of foreign investors no longer rely on Israeli VC firms and are now investing directly in Israel’s technology market through foreign VCs, corporate VCs or as individuals.
Here is a sample of Israeli startups that finished the year on a high note:
Covidien acquired Given Imaging, provider of a technology platforms for visualizing, diagnosing and monitoring the digestive system, for approximately $860 million, to give it additional scale and scope to serve the multibillion dollar global gastrointestinal (GI) market.
Market acquired Insightera, a real-time personalization platform for websites and mobile applications, for $20 million. Insightera’s Israeli office will form the foundation of Marketo’s innovation center focused on big data and predictive analytics. The company has raised a total of $6.5 million.
Emerson acquired APM Automated Solutions, a developer of solids volume and level measurement instrumentation. It’s Emerson’s first acquisition in Israel. APM has raised $10 million and will become Emerson’s R&D center in Israel.
Lots more to come in 2014, no doubt.