Attracting Venture Capital In a short time, Israel has been successful in facilitating high-tech development and attracting foreign investment, both of which have contributed to substantial growth in the Israeli economy. During the first three quarters of 2000 Israeli companies raised $2.4 billion in venture capital. Investments have found particularly favorable return in the growing Internet and biotechnology sectors. As overseas investors become increasingly familiar with Israeli successes, the venture capital market has grown more competitive. In 1994 Lehman Brothers was the first US investment bank to establish a permanent branch in Israel, and 30 banks have followed its lead. Prominent venture capitalists and financial institutions with stakes in Israel today include Advent; Walden Capital Partners; Lightspeed Venture Partners; Softbank; Goldman Sachs; Salomon Smith Barney; Lehman Brothers; and Citicorp.