Venture capital funds across the globe prefer Israel as one of the top five locations for investment, according to a survey by accounting and consultancy firm Deloitte Brightman Almagor.

American VG managers, according to the survey, gave Israel top rating for quality deal flows. 70% of those polled named Israel as a major source, compared with 21% who named Canada, 18% China, 17% for the UK and 10% for India.

In terms of entrepreneurship, Israel rated second in quality of its entrepreneurs, with 20% of VC managers naming the Jewish state as a prime source of high quality entrepreneurs; 21% named Canada.

Israel was rated in third place as a preferred location for research and development activity. Ahead of Israel’s 7% were China, 8% and India, 29%.

Igal Brightman, Chairman & CEO of Deloitte Brightman Almagor and Global Managing Partner of the Technology, Media and Telecommunications (TMT) Industry Group in Deloitte, told Globes: "It is clear that the interest that US venture funds are showing in Israel will continue and even intensify further in the future.”

Brightman pointed out that although VC funds around the world have taken notice of Israel, Europe seems to still avoid investment in the Jewish state. “European funds still do not consider Israel an attractive investment location, even though Israel is close to Europe, and is suited to European funds' policy of investing in neighboring countries," he said.

The survey covered members of venture capital associations in the US and Europe, as well as 16 other international VC funds.