Fewer new start-ups founded in first half 2006 - Hadas Manor

14 Sep 06 19:10

The rate of founding new start-ups in Israel is slowing. 72 new start-ups were founded in the first half of 2006, mostly software, telecommunications, security and biotechnology. 47 start-ups closed down. The net number of new start-ups was therefore 25 in the first half, for a total of 2,686.
The Israel Export and International Cooperation Institute attributed the decline in the number of new start-ups, compared with 2005, to the fact that seed-stage companies were struggling to raise capital without venture capital funds.
To help solve this problem, the Export Institute yesterday sponsored the Israel InnovaTech conference in New York for investors interested in Israeli start-ups. US participants included Microsoft Corp. (Nasdaq:MSFT), Silicon Valley Bank, Bank of America (NYSE:BAC) and Delta Ventures.
23 Israeli content, media, information security and telecommunications start-ups also attended, along with 250 US investment companies, venture capital funds, private investors and high-tech companies to whom the Israelis made presentations. Participating Israeli companies included IncrediMail Ltd. (Nasdaq:MAIL), Intelinx Ltd., Kasamba, OptiTex Ltd., SpeedBit Ltd., and Yoggie Security Systems Ltd..
Export Institute director general Yechiel Assia said 63 Israeli start-ups were acquired by Israeli or foreign companies last year for an aggregate $2.75 billion. He added that 332 start-ups were founded and 204 closed down in 2005, and that Israel had 2,622 start-up operating at the end of the year.
The figures on new start-ups and those that closed are from IVC Research Center.

Published by Globes [online], Israel business news - www.globes.co.il - on September 14, 2006
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