Israeli internet startups represent only 11% of the capital raised. But i think way more in terms of company created

The globes share a study by IVC informing that more than 1 billion dollars was raised by high tech startups in first half of 2008. This number is impressive, specially when you consider the global economical fear (not totally justified btw). The interesting number is that only 11% of those investments go to web startups.

I am not sure you can compare 1% of dollar invested in communication/Life Science and internet since the cost of inception and seed funding is probably the lowest in the internet compared to any other high tech vertical. I would be more interested in knowing the number of startups funded in the web compared to other sectors: my gut feeling and sense of observation of the israeli tech scene would say that the ranking would be totally different and that internet would probably rank 1 or 2.

Seed investments are slowing down compared to 2007 (5% vs 12% last year) this is an indicator that the market has less faith in the economical potential of the web. I think this is a fair assumption to say that no one knows what is going to happen. However there is no indication of slow down at this day on the web: users are growing, ad dollars and ecommerce too. It is not going to change tomorrow in my opinion. One thing that changed is that the IPO market is dead for internet companies and investors are partly worried about it. They should not. An objective and cold view should lead investors to keep up with the level risks as other paths to liquidity are there, specially on the Merge and acquisition side (which is going to accelerate in the next 12 months in my opinion)

At Lgilab we are still committed to invest in young startups at very early stage (i insist on early). And we will announce soon a new operation.

Note: Read also Fred Wilson's note on the dichotomy of the web economy and traditional stock market