Israeli high-tech startups raised $381 million in the third quarter of 2006.

The figure was 13 percent higher than the corresponding quarter a year ago. The Israel Venture Capital (IVC) ResearchCenter is forecasting that the amount of high-tech capital raised this year will reach $1.5 billion.

“The third-quarter results showed that the war in Lebanon this summer had only a very minor impact, if any, on venture capital investments,” said Zeev Holtzman, chairman of both IVCResearchCenter and Giza Venture Capital.

Eighty-seven Israeli startups raised funds during the third quarter. Israeli venture capital funds accounted for 38 percent of them, with foreign venture firms accounting for much of the rest.

Web 2.0 Investments Pick Up

LGiLab, a joint initiative of Gemini Israel Funds and the Menlo Park, California-based firm Lightspeed Venture Partners, has made its first investment. The fund has invested in bp Interactive Technologies, a developer of online entertainment.

The amount of the investment was not disclosed, but at the time of its establishment LGiLab said it intended to invest up to a maximum of $1 million.

Content-sharing startup eSnips has raised $2 million in a first round of financing from Gemini Israel Funds and Greylock Partners. The Netanya-based company allows members with similar interests to share digital content on its site.

Wi-Fi startup Extricom has raised $12 million in a third round of financing. The round was led by Belden CDT and included existing investors Motorola Ventures, Magnum Communications Fund, and Vertex Venture Capital. Extricom develops commercial Wi-Fi systems.

RR Satellite IPO on Nasdaq

RR Satellite Communications became the latest Israeli high-tech firm to go public on the Nasdaq. The provider of international satellite radio and television broadcasting and production services raised $47.5 million at a company value of $208 million.

Google Looks For Geeks

Google is stepping up its activities in Israel. The search engine giant plans to operate two R&D centers in Israel. The centers in Tel Aviv and Haifa have begun initial operations and are now looking to hire dozens of local engineers.

The directors of the two centers said Google Israel will work a lot on research developed in the field, and each center will work independently. The R&D centers will also collaborate with Israeli companies, including strategic cooperation and possible acquisitions.

Salaries on the Rise

A survey by TelAvivUniversity economist Moshe Zviran found that wages in Israel’s high-tech sector rose by 5.4 percent in the first three quarters of the year. The survey was based on data from 270 companies that employ more than 85,000 people. By comparison, wages rose last year by 5.1 percent and in 2004 by 4.8 percent.

Teva Sees Record Copaxone Sales

Israeli pharmaceutical giant Teva Pharmaceutical Industries announced that sales of its Copaxone drug for the treatment of multiple sclerosis increased by 15 percent to a record $354 million in the third quarter. The company expects that in 2006 the drug will have annual sales of over $1 billion for the first time.

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