The recent events in the American economy, namely the downgrading of the US credit rating by S&P, may affect hi-tech and biomed companies.
These companies depend on the American economy in several critical ways: the US is the main market for their products; they need to raise capital, most of which comes from American venture-capital funds; and to make an exit, they need an active capital market, or high-growth companies with money available to invest in acquisitions. These are almost exclusively American companies.
‘When the IPO market is weak, the sector suffers’ “Current events in the US are definitely not good for us,” Genesis Partners partner Dr. Eyal Kishon said. “When our companies don’t sell, when the relevant investors don’t want to invest, and when the IPO market is weak, the entire sector suffers.”
To read the full, original article click on this link: When the US sneezes, Israeli biomed ... JPost - Business - Globes
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