D&B Israel: Pitango is top VC fund

Star Ventures is in second place, despite not having raised a new fund since the 1990s.

Pitango Venture Capital is Israel's largest venture capital firm, in terms of capital managed, according to the Dun and Bradstreet Israel's rankings for 2009.

Dun and Bradstreet Israel ranks venture capital firms on the basis of all capital raised for all funds since the firm was founded, not the amount of capital currently under management. The results can be odd, since a venture capital firm founded in 2000 with a $500 million fund bears no relationship to the current amount of capital available. The 2000 fund would have long since invested its capital in companies, some of which have since closed, while other will have been sold or held IPOs.

In its 2009, rankings, Dun and Bradstreet Israel states that Israel's top 15 venture capital firms have an aggregate NIS 35.9 billion ($8.7 billion at an exchange rate of NIS 4.10/$) in capital. It adds that Israel has 60 venture capital funds, but this figure may refer to all funds that ever raised capital. In reality, Israel has no more than 15 venture capital funds that are actively investing in start-ups.

Dun and Bradstreet Israel once again ranks Pitango as Israel's largest venture capital fund, with NIS 5.52 billion ($1.3 billion) in capital in 2009. Pitango kept its rank thanks to its fifth fund, raised in late 2007.

Star Ventures, with $920 million in capital, also kept its second place rank. The ranking is rather surprising, given that it has not raised a new fund since the late 1990s, when it raised around $1 billion. Star has made no new investments for more than three years, and has effectively ceased to function.

Evergreen Venture Partners, with $817 million in capital, kept its third place rank. Evergreen raised a new fund in 2007.

Among the top five funds, only Jerusalem Venture Partners (JVP) increased its assets under management during 2008, mainly because it was the only venture capital fund to make its first closing on a new fund during the year. With $720 million in capital, JVP surpassed Gemini Israel Funds to take fourth place in the 2009 rankings, relegating Gemini to fifth place.

Carmel Ventures, with $563 million in capital, had the greatest change in rankings, rising to seventh place from 12th place in 2008, after raising $235 million for its third fund last year.

Published by Globes [online], Israel business news - www.globes-online.com - on February 19, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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