Crowdfunding Investments in Israel-Linked Startups Gain Steam

2017 is on pace to surpass 2016 in terms of aggregated equity crowdfunding of Israel-linked startups, according to a Monday report by IVC Research Center Ltd., a tech-focused Israel-based research company.

Israel-linked startups raised $173 million through equity crowdfunding in the first half of 2017, according to the report, around 73% percent of overall sum raised through crowdfunding in 2016.

Over the last five years 145 Israel-linked tech companies were financed through equity crowdfunding companies, the report says. 68% of the companies funded this way raised seed and early stage money.

Equity crowdfunding got off the ground in 2012 following the U.S. legislation known as JOBSact—Jumpstart Our Business Startups. The legislation regulated and authorized funding of small businesses by easing many of the country's securities regulations.

2015 was the most prolific year for equity crowdfunding in Israel, with $298 million raised. Equity crowdfunding platforms were responsible for $57 million investments that year, in 50 deals, according to IVC.

The most active equity crowdfunding platforms in Israel according to the report are OurCrowd, with 58% of the deals, iAngels Crowd, with 30% of the deals, ExitValley with 6% of the investments, and Pipelbiz with 5% of the investments.

Replay Video Technologies Ltd., an online entertainment company bought by Intel in 2016, is one of 17 crowdfunded companies that were sold over this period. OurCrowd dominates the list, with investments in 88% of the crowdfunded companies sold.