The failure by Israel's Matomy Media Group to list in London last week after falling short with investors in the European Union did not reflect a lack of faith in Israeli companies, exchange officials told Reuters.

In fact the opposite is true, said Luca Peyrano, head of primary markets for Europe at the LSE.

"There is a lot of interest and a growing trend for (Israeli) companies exploring the idea of coming to London to raise capital," Peyrano said on a visit to Tel Aviv.

"After five years of crisis it's natural you will find investors are cautious. This is nothing Israel specific, and I would say the opposite. There is a general perception that Israeli companies might provide some of the most intriguing cases for future growth," he said.

Peyrano would not provide numbers, but said he expects 2014 to have the strongest level of activity for Israeli companies since 2007, before the start of the global financial crisis. There was only one Israeli listing last year but there have been two to date this year including SafeCharge last week.

Axel Kalinowski, manager of continental Europe at the LSE, said most Israeli companies are focusing on the junior AIM market, which he said targets younger, innovative and fast-growing businesses that are common in Israel.

"We see a natural fit in many ways between what Israel has to offer in terms of being at the forefront of technology development, innovation, etc., and matching that with the financial sources that we have," Kalinowski said.

Jeff Harris, a partner in the capital markets team at accounting firm BDO, which hosted an event with local businesses interested in a London listing, said his team is in talks with two or three companies planning a London IPO in 2014.

The bulk of the interest is in AIM, all are technology companies and they have a high probability for success, he said.

"It's been a mixed track record (for Israeli companies)," he said. "But I think we are seeing bigger businesses with a more robust business model. That gives a better chance for success, not just in terms of the float, but long term."

(Editing by Tova Cohen)

By Ari Rabinovitch