Chinese investors prefer mature and profitable Israeli firms, report says
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Chinese investors prefer mature and profitable Israeli firms, report says

In the first 3 quarters of this year, Chinese companies participated in three of the four high-tech deals that raised over $100 million each, according to IVC Research Center

Jack Ma, the founder of China's e-commerce giant Alibaba Group, speaking at the Prime Minister's Innovation Summit in Tel Aviv, Oct. 25, 2018 (Shoshanna Solomon/Times of Israel)
Jack Ma, the founder of China's e-commerce giant Alibaba Group, speaking at the Prime Minister's Innovation Summit in Tel Aviv, Oct. 25, 2018 (Shoshanna Solomon/Times of Israel)

Chinese investors have steadily increased their activities in Israel in the past two years, going from an average of 15 investments per quarter to some 20 investments, a new report by IVC Research Center, which tracks the Israeli high-tech industry, shows.

In the third quarter of the year, Chinese investors took part in 16 Israeli high-tech deals, in line with the average quarterly figure for the past three years.

An analysis of their deal preferences showed that the tendency is to invest in “mainstream” sectors such as software and life sciences companies, the report said.

The report also shows that the investors prefer investing in more mature and profitable tech companies. Chinese investors participated in 35% of the largest Israeli high-tech deals in the first three quarters of 2018.

During this period, Chinese companies participated in 17 deals that raised over $20 million each, and in three of the four deals that raised over $100 million each.

In addition, in the past five years, Chinese investors participated in 17 deals of over $50 million each, with almost 60% of the deals clinched in 2017–2018, the report said.

The most active Chinese investors in Israel, in the past five years, were Horizon Ventures, with a total of 32 deals, CE Ventures, with 19 and GO Capital & EOC Assets (GEOC) with 18. Alibaba, the e-commerce giant, recorded 12 deals, the report showed.

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