In the course of the first four weeks of the year, Israeli startup companies sold for a record $860 million, and observers expect large corporations to extend their shopping spree in Startup Nation well into 2015.
Israeli Startups
According to the IVC-Meitar Exits Report, in all of 2014, 99 Israeli companies sold for a total of $6.94 billion, which translates into an average monthly rate of $578 million – two-thirds of the acquisition volume recorded in January 2015 alone.
The bulk of money (roughly $670 million) spent on Israeli companies in January went toward the acquisitions of Annapurna, CloudOn and Redbend. Why did giants like Amazon and Dropbox flock to Israel to gobble up these startup companies? A look at the latest string of acquisitions reveals not only promising new technologies and entrepreneurs, but also the notorious Israeli chutzpah – which helps international companies solve their problems creatively.
According to the IVC-Meitar Exits Report released this month, 99 Israeli high-tech companies sold for a total of $6.94 billion in 2014, up 5 percent from $6.59 billion of 2013 (90 exits). Koby Simana, CEO of the IVC Research Center, expects this trend to continue in 2015. “This wave of acquisitions started two years ago, and it’s gaining more momentum,” he tells NoCamels. Already in 2014, there was an increase in deals ranging from $100 million to $500 million – 18 deals vs. 12 in 2013.
Ofer Sela, Technology Partner at KPMG Somekh Chaikin, expects 2015 to yield additional exits, as 40-50 startups are mature enough for acquisitions. “It’s very hard to recruit talented employees in Silicon Valley now – the competition is wild,” Sela tells NoCamels.
Amazon buys Annapurna Labs for $370 million
Dropbox acquires CloudOn for an estimated $100 million
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Israeli Startups
HARMAN Buys Red Bend for $200 million
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Israeli Startups
This article was first published on NoCamels – Israeli Innovation News and was re-posted with permission.
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Israeli Startups
