Thursday, March 3, 2011

Letter From A Friend For Confirmation

Israel, a land promised to the venture capital ....







Israel, a land promised to the venture capital ....


With over 1.2 billion dollars invested annually in nearly 300 new companies technological
, Israel has become the second destination in the world of venture capital behind
States USA.
Raising nearly $ 350 million in January 2010 with various banks, the start-up
Israeli Better Place, which is the global leadership of infrastructure for electric vehicles, fully embodies this dynamic.
How this young country of 7 million inhabitants, moving the heart of a complex geopolitical situation,
he managed to attract over the last twenty years of financial investors from around the world?
Even as the European venture capital is struggling to recover from the bursting of the dotcom bubble - except Switzerland and some Nordic countries - Israel has managed to create conditions of a venture capital alternative, efficient, dynamic competition now famous Silicon Valley.
By integrating the OECD in May 2010, Israel has demonstrated good governance of its economy,
and strong productivity that ensures its attractiveness to foreign investment.
one predominantly agricultural economy, Israel has become a global player in the fields
innovation and R & D (Research & Development). The information technology
and communication - which grew at a rate of nearly 11% per year for 10 years now represent
half of exports and nearly 20% of the value added produced in this country. Only South Korea is now better. Israel has thus emerged the global leader in high-tech just like Checkpoint, global specialist in computer network security. The country also
behind many disruptive technologies (technological innovations that relate to a product or service and eventually replace the dominant technology in a market) used Daily by millions of consumers, such as memory cards developed by Israeli company M-System.
Building on a strong political will, Israel has created an environment conducive to R & D. Large
global technology groups, such as Microsoft, Intel and LG, have well established for several years their own research centers in the country.
With nearly 5% of GDP spent on civil R & D-one of the highest rates in the world - and a constant interaction between its research infrastructure and military
the centresuniversitaires,
the country became one of the main contributors of international patents to its reported population. With the highest global rate of spending on education (nearly 9.5% of GDP)
and through continued immigration and skilled, the Israeli high-tech industry can rely on
a young, educated and entrepreneurial spirit. There are in Israel for nearly 135 engineers 10 000 inhabitants, twice the U.S., Japan or Germany.
This environment thus provides a playground attractive to local and international investors.
Sequoia, the icon of venture capital in Silicon Valley who has particular and incubated with growth companies like Yahoo, Cisco or Google, do not make a mistake by setting up locally in 1999.
Fifty managers of venture capital - including local pioneers such as Pitango, Evergreen, or Giza - share a market that has funded nearly 391 companies last year invested an amount
above 1200 million. The Israeli model is different from traditional venture capital,
which funds the development of a society, R & D to final product, then introduce it in stock.
This model is unfortunately dependent on volatile stock markets to realize the value created.
It also confronts the challenge of the long and uncertain road to créationd'entreprise.
The Israeli venture capital is more simple and effective. By positioning itself very early on innovative technologies
from academia, investors limit themselves voluntarily to finance early stages of R & D, to create in a few years either
a Business accomplished, but a
technology platform that another high-tech company may acquire.
Israel has become the "shopping rnall" major global technology group, who prefer acquire the technology, they will be able to simply "plugger" in
their platform products and distribution, rather than internalize the costs of R & D.
The growing number of Israeli companies sold during the last 10 years
with major international groups
illustrates this model of outsourcing technology development,
which offers ; parallel liquidity sought by venture capital players. Creation value may be more modest but rather it is more regular.
Strong demand global technology and current abundance of financial resources within major technology groups therefore provides venture capital
Israel a peaceful future.
Olivier Carcy
Activities Officer Private Equity Credit Agricole Private Banking

Source: Le Temps -

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