June 2006
IVA OverviewThe IVA is the organization representing the Israeli venture capital community.
Venture Capital is a major source of financing for start-up and early stage technology companies.
Israeli VCs have played a major role in making Israel an important global source of innovation.
June 2006 4
Multi Nationals with R&D Centers in Israel (Partial List)
AlcatelAnalog DevicesAMCCAvayaBMC SoftwareBoston ScientificBroadcomComputer AssociatesCEVACiscoConexantFreescale SemiconductorGE Medical SystemsHP (including HP Labs)IBMInfineonIntel
InterpharmKLA-Tencor Kollmorgen ServotronixMarvell SemiconductorMicrosoftMotorolaNational SemiconductorOraclePfizerPhillipsQUALCOMMSamsungSAPSiemensSilicon GraphicsSun MicrosystemsSunGardTexas InstrumentsVeritas Software
June 2006 5
Foreign VCs Investing in Israel
Accel PartnersAdvent InternationalAlice VenturesAlta BerkeleyAmadeus CapitalAmpersand Venture ManagementApax PartnersBancBoston VenturesBattery VenturesBenchmark CapitalBertelsmann VenturesBessemer Venture PartnersBoston Capital Ventures
Global Catalyst Partners Greylock PartnersHarbourVest PartnersHummer Winblad Venture PartnersJAFCOKodiak Venture PartnersLightspeed Venture PartnersMenlo VenturesMercator VenturesMeritech Capital PartnersMerlin BiosciencesMerrill Lynch Venture CapitalMission VenturesMPM Capital
133 Foreign VC Funds Invested in more than one company
in Israel from 2000-2004 (Partial List)
Cont.
June 2006 7
Capital Raised By Israeli VCs
-100
900
1900
2900
3900
($M
)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Source: IVC research center
June 2006 9
Israeli High Tech Companies Newly Established, by Sector 2001-2005
In 2004, more companies were established in life sciences than in any other industry for 4th consecutive year
0
40
80
120
160
200
2001 2002 2003 2004 2005
Communications Enterprise & IT Life Sciences Miscellaneous Internet
Source: IVC online database
June 2006 10
Capital Raised by High Tech Companies, Israel & US ($M)
0
2000
4000
6000
8000
10000
12000
California Mass Israel Texas New Jersey New York Washington
2003 2004 2005
Source: Israel – IVC Research Center, US – Venture One
June 2006 11
Capital Raised by High Tech Companies, Israel & Europe ($M)
0
500
1000
1500
20002003 2004 2005
Source: Israel – IVC Research Center, Europe – Venture One
June 2006 12Cont.
M&A Transactions (1996-2005)
9
12
21
38
63
28
65
61
58
34
389
Total Number of Deals
456
666
1,306
4,267
16,065
581
2,273
1,189
1,834
2,475
31,112
Total Volume ($M)Year
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Total
June 2006 13
Selected Hi Tech M&A 2005Foreign Acquirers
AcquirerHP
Cisco System
Broadcom
McKesson
eBay
Juniper Networks
Alcatel
Intel
Kodak
Cadence Design
UGS
Israeli CompanyScitex Vision
Sheer Networks
Siliquent Technologies
Medcon Telemedicine
Shopping.com
Kagoor Networks
Native Networks
Oplus Technologies
Orex
Verisity
Technomatix
IndustryPrinting Technology
Communications
Communications
Medical Devices
Internet
Communications
Communications
Communications
Communications
Enterprise Software
Enterprise Software
Value of Acquisition230
122
84
105
634
67
55
100
62
315
227
June 2006 14
Selected Hi Tech M&A 2005Israeli Acquirers
Israeli AcquirerTeva
Comverse
Amdocs
Checkpoint
Amdocs
Retalix
Retalix
M-Systems
Nice
Nice
Foreign AcquirerIvax
CSG (GSS Division)
DST Innovis
Sourcefire
Longshine
TCI Solutions
IDS
Microelectronica Espanola
Fast Video Security
Dictaphone
IndustryPharmaceutical
Communications
Communications
Enterprise Software
Communications
Enterprise Software
Communications
Communications
Communications
Communications
Value of Acquisition7.400
251
238
225
30
34
44
40
21
38
June 2006 15
Selected Hi Tech M&A 2006Foreign Acquirers (Partial List)
AcquirerPMC- Sierra
Johnson & Johnson
EMC
Stryker
BMC
Microsoft
Dentsply
TA associates
Epix
CA
Microsoft
Israeli CompanyPassave
ColBar
Kashya
Sightline
Identify
Gteko
Uri-Dent
Alma Lasers
Predix
Xosoft
Whale
IndustryCommunications
Life Science
Enterprise Software
Medical Devices
Enterprise Software
Enterprise Software
Medical Devices
Medical Devices
Pharmaceutical
Enterprise Software
Enterprise Software
Value of Acquisition300
159
153
150
150
120
100
90
90
80-120
76
June 2006 16
Selected Hi Tech M&A 2006Foreign Acquirers (Partial List)
AcquirerLucent
Francisco partners
LSI Logic
Zerox
Solutions 180
Fitserv
AMS
EMC
Pricer
EMC
Unity
Israeli CompanyMobilitec
Ex Libris
Storage
XMPies
HotBar
InsureWork
MedImpulse
nLayers
Eldat
ProActivity
Celletra
IndustryCommunications
Enterprise Software
Communications
Enterprise Software
Internet
Enterprise Software
Medical Devices
Enterprise Software
Communications
Enterprise Software
Communications
Value of Acquisition75
62
55
54
52
52
50
50
40
30
20
June 2006 17
Potential Co-operation
Human CapitalLarge Markets for Israeli ProductsCapital for Israeli VC’sR&D and Innovative infrastructureExperienced VC Industry