Last year, we published a research brief showing that Israel was a high-performing market for venture-backed company exits in 2013, including the exits of Wix and Intucell, both backed by US-based Bessemer Venture Partners.
As momentum increases in the “startup nation,” we used CB Insights data to analyze trends in Israel’s VC-backed exits in 2014 and 2015 year-to-date. This brief includes annual exits data, sector breakdowns, and top exits.
This year has already surpassed 2014 for venture-backed exits for Israel-based companies, at 23 year-to-date. Last year had already seen healthy year-over-year (YoY) growth with 69% growth in exits.
2013 exits look small when compared to 2014 and 2015, but the year did notch a high-profile exit in web development platform Wix.com, which exited at a $601M valuation in Q4’13.
Exits by sector
Israeli exits in 2015 year-to-date (YTD) have come from a variety of sectors, with mobile and telecom, internet, and healthcare being the top three sectors for exits, in that order.
- Mobile and telecommunications companies have accounted for 30% of exits YTD in Israel after making up about one-fourth of exits in the previous two years.
- There was a spike in healthcare exits in 2014, when they accounted for 36% of Israeli exits, up from 8% in 2013. In 2015 year-to-date, the sector has contributed 17% of exits.
- Software exits have slowly declined hitting a three-year low of 9% in 2014, but have bounced back a bit to 13% in 2015 YTD, as seen below.
Largest exits since 2013
Below are the 5 largest venture-backed exits of Israel-headquartered companies since 2013. Topping the list is Jerusalem-based Mobileye which develops driver-assistance technology, and counts GM, Honda, and BMW as some of its customers. Bessemer Venture Partners is an active venture capital firm in Israel, and was an investor in 2 of the top 5 exits as seen below.
Note: The list below doesn’t include exits of originally Israeli companies that relocated to the United States, including Waze (acquired by Google in June 2013 for $966M) and Trusteer, which IBM bought in August 2013 at a $900M valuation.
|Top 5 Venture-Backed Exits Headquartered In Israel Since 2013|
|Company||Valuation||Exit||Date Exited||Select Investors|
|Mobileye||$ 5,308||IPO||Q3’14||Motorola Solutions Venture Capital and Goldman Sachs|
|Solaredge Technologies||$ 685||IPO||Q1’15||Genesis Partners and Lightspeed Venture Partners|
|cCam Biotherapeutics||$ 605||M&A||Q3’15||Arkin Holdings and Pontifax|
|Wix||$ 601||IPO||Q4’13||Bessemer Venture Partners and Benchmark Capital|
|Intucell||$ 475||M&A||Q1’13||Bessemer Venture Partners|
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