Stock market fixings. Photo: WikiCommons.

Israeli technology companies raised $643 million in new capital in the first quarter, up 53 percent from the $439 million raised a year earlier, according to a report by KPMG Israel and IVC Research Center published by Globes on Wednesday.

The capital was raised by 160 Israeli companies. The investment volume was the second-highest quarterly amount ever, exceeded only by the fourth quarter of 2013, when $801 million was raised.

“This is the third quarter in a row that capital raising exceeded $650 million. These are great figures that show a sustained, positive momentum for the Israeli high-tech industry,” said Koby Simana, an author of the report.

Investments by Israeli venture capital funds in the first quarter was $106 million, the lowest quarterly share ever, 16%,  down from 25% the preceding quarter and 33% from a year earlier, as foreign investment grows.

Ofer Sela, another author of the report, said, “This is an indicator of the maturity of the Israeli technology market and signifies that Israeli VC-backed companies are market leaders, providing more than just a ‘great technology solution.'”

“These later stage rounds are being led by investors who tend not to be venture capital investors,” Sela said. “They are bestowing significantly higher valuations and lower risk to deals, similar to the private equity industry.”

Internet start-ups raised the most capital in the first quarter, $260 million, or 39% of the total – the highest amount and share by the sector since 2000, Globes said. Late-stage companies raised $227 million in the first quarter – 34% of the total raised – mid-stage companies raised $221 million, and seed-stage companies accounted for 6%.