According to a KPMG-IVC report, capital raising increased by 9 percent over the first quarter of last year: "The industry is hard at work."

With billions of dollars pouring into Israeli startups, the question many ask is who really benefits from the thriving high tech scene.

Israeli internet startups are blazing hot, raising 35 percent of the funds in the first quarter of 2015, followed by the life sciences sectors.

Large corporations are on a shopping spree in Israel, the innovation nation. How much money are they spending on startup companies and why?