M&A deals, IPOs down 33% in 2018, says the PwC Israel 2018 Exits report, which predicts ‘the Israeli high-tech market will continue to be a fertile breeding ground for the world ‘
Despite this news Israel remains a very strong startup ecosystem with many potential IPOs and exit possibilities in 2019.
In 2018 there were 61 exit deals totaling some $4.9 billion, the report showed, with the average deal being around $81 million, compared to an average deal size of $106 million last year.
- ++ Many startups seem to be run by more patient and savvy managers (both investors and entrepreneurs) willing to wait longer if needed
- – – Overall instability of global capital markets, the US-China trade feud and rising interest rates in developed countries were the negatives seen
- ++ Israel clearly remains the place where global tech giants look for investments: “Among the notable deals this year were the Datorama acquisition by Salesforce, Velostrata’s buyout by Google and Facebook’s acquisition of RedKix.”
- ++ It does not have to be high-tech: “Companies in the $1 billion dollar club were this year joined also by firms that were not strictly tech-based, like SodaStream, the maker of carbonated water drinks, which was acquired by PepsiCo Inc. for $3.2 billion and flavorings maker, and Frutarom, which was sold to for $7.1 billion to US firm International Flavors & Fragrances (IFF).”
- ++ Tel Aviv remains a heavyweight tech hub, that attracts the world’s most corporate venture funding, see the CBS list and some impressive numbers
- – – There is no Swiss city mentioned in the Top 25 cities list from the CBS report. Does IMD, WEF and others don’t look at such numbers when they make their reports?