Corporate investment is playing an increasingly significant role in the Israeli high-tech industry, according to a new report by the IVC Research Center released this week, with Intel’s investment arm, Intel Capital as a leading player.
According to the report, a total of 157 corporate investments have been made this year, a 30 percent increase from 2013-2014 figures, accounting for 18 percent of the total capital raised by Israeli startups between the first and the third quarter of 2018.
The research firm also stated that corporate venture capital funds have invested $807 million in Israeli high-tech so far this year.
The most active corporations since 2017 have been Intel Capital, leading the way with 12 investments in Israeli startups, followed by Dell Technologies Capital and GE Ventures with 10 and Liberty Israel Venture Fund LLC, Qualcomm Ventures, Samsung Venture Investment Corporation (SVIC) and Taya Ventures with 8.
IVC’s findings indicated that US companies in general have been leading the way in corporate investments, and have poured a total of $253 million into Israeli companies in 2018, followed by Europe with $229 million and Asia with $196 million. Over the years, Germany and the UK have been showing greater involvement in Israeli investments, as have Asian investors, especially from Japan and China.
The majority of capital was invested in IT & Software and Life Sciences, with corporate VCs and high-tech companies proving to be the most active investors among all corporates.
Between 2017 and 2018, eight deals consisting of over $100 million involved corporate investors. The most substantial deal was German chemical company Altana AG’s $300 million investment in Landa Digital Printing, followed by the $250 million investment in Israeli ridesharing startup Via made by automakers Daimler AG, Mercedes Benz, SAIC Venture Capital, and Hearst Ventures and the $150 million medical device company InSightec received from GE Ventures.