The starting point of this
overview is the databases on the Tech sector in Israel provided at the
following websites:
·
www.science.co.il: The origin of the site dates back to the term when
Israel Hanukoglumy served as the Science Adviser to the Prime Minister during
1996-1999. Since then, the site has been vastly expanded. The site is regularly
maintained and the links are periodically checked and updated.
According to these two
sources, the Israeli software sector could be classified as follows:
|
Category-Science |
Unclassified |
Growing |
Public |
Start-up |
Total |
% on Total |
|
Network |
43 |
5 |
1 |
|
49 |
18% |
|
Software house |
18 |
15 |
|
|
33 |
12% |
|
E-Business |
17 |
10 |
2 |
2 |
31 |
11% |
|
Telecommunications |
26 |
2 |
|
|
28 |
10% |
|
Multimedia |
18 |
2 |
|
|
20 |
7% |
|
Internet Utilities |
15 |
2 |
|
|
17 |
6% |
|
Education |
10 |
2 |
1 |
|
13 |
5% |
|
Medical |
12 |
1 |
|
|
13 |
5% |
|
Special systems |
11 |
1 |
|
|
12 |
4% |
|
Security |
7 |
3 |
|
1 |
11 |
4% |
|
CAD/CAM |
7 |
2 |
1 |
|
10 |
4% |
|
Document processing |
6 |
4 |
|
|
10 |
4% |
|
Web site building |
9 |
1 |
|
|
10 |
4% |
|
Development tools |
3 |
1 |
1 |
|
5 |
2% |
|
Software testing |
2 |
2 |
1 |
|
5 |
2% |
|
Job placement |
4 |
|
|
|
4 |
1% |
|
Knowledge management |
4 |
|
|
|
4 |
1% |
|
Digital Print |
3 |
|
|
|
3 |
1% |
|
|
|
|
|
|
|
|
|
Total |
215 |
53 |
7 |
3 |
278 |
|
|
% on Total |
77% |
19% |
3% |
1% |
|
|
Preliminary observations:
Israeli
Publicly Traded Companies in the US
There are a total of 107
Israeli companies publicly traded in the US. This includes not only the
Software firms but also other types of tech Israeli companies. Of the 107, 97
are traded on Nasdaq, 7 in NYSE and 3 in AMEX. The total approximate market cap
of these companies is $96 Billion. If we only consider Nasdaq, Israeli
companies (software and others) represent roughly 2% of the index both in
number of companies and total Market cap.
|
|
Israeli firms |
Total Firms |
||
|
INDEX |
# of Companies |
Market Cap ($Billion) |
# of Companies |
Market Cap ($Billion) |
|
Nasdaq |
97 |
78.37 |
4961 |
4356 |
|
NYSE, AMEX |
10 |
17.32 |
|
|
|
Total |
107 |
95.79 |
|
|
Paying closer attention to
the Israeli Software firms publicly traded in the US, we find that they make up
36% of the Israeli firms traded in the US but almost 75% of the total market
cap. This is, the bulk of the Israeli companies traded in the US belong to the
software sector.
Sectors |
Israeli firms |
|||
|
# of Companies |
Market Cap ($Billion) |
|||
|
# |
% |
$ |
% |
|
|
Software
sector |
38 |
35.6 |
71.59 |
74.7% |
|
Other
sectors |
69 |
64.4 |
24.20 |
25.3% |
|
Total |
107 |
100% |
95.79 |
100% |
Within the software sector,
there are also interesting differences in the number and value of companies
that have gone public and are trading in the US. As can be seen in the table
below, the three sub sectors that represent the bulk of the Israeli presence in
the US public exchange markets. These
are the Network, Security and Software House sector. However, it is important
to highlight that each sector has a big leader that is a heavy weight in its
area worldwide. These companies are Checkpoint for the Security sub sector ($22Billion),
Comverse Technologies for the Network sector ($18 Billion) and AMDOCS for
Software Houses ($15 Billion traded in AMEX)
The complete list of
Israeli Companies traded in Israel can be accessed clicking here.
Category |
Sum of Market Cap (millions) |
Count of Company |
Network
|
23,520
|
8
|
Security
|
22,346
|
3
|
Software House
|
15,338
|
2
|
Software Testing
|
6,830
|
1
|
Digital Print
|
1,135
|
2
|
Telecommunications
|
664
|
2
|
E-Business
|
528
|
7
|
Medical Systems
|
435
|
1
|
CAD-CAM
|
289
|
4
|
Multimedia
|
187
|
1
|
Development tools
|
167
|
2
|
Medical
|
162
|
1
|
Education or Telecom
|
41
|
1
|
Special Systems
|
37
|
2
|
Document Processing
|
13
|
1
|
|
|
71,693
|
38
|