TLDR:
Andreessen Horowitz has increased its investments in Israeli startups, while local funds struggle to raise capital. In the first half of 2024, the American venture capital fund made investments in notable Israeli companies like Wiz and Utila.
Full Article:
The American venture capital fund Andreessen Horowitz has increased its activity in Israel, investing in four companies in the first half of 2024, as per the IVC-Gornitzky-KPMG investors report. In comparison, many older local funds like Pitango and Viola made fewer than four investments during this period.
Israeli VCs ranked as the most active funds in the first half of 2024, with micro funds like Fusion and Iron Nation leading the way. However, the overall trend in capital raising for Israeli VCs has been downward, with only ten funds raising money in the first half of 2024. Two large funds, Red Dot Capital Partners and Vintage Growth Fund, raised a significant portion of the total capital.
Two strategic investment funds raised $600 million in the first half of 2024, a 64% increase compared to the previous year. Israeli institutional investors participated in 13 funding rounds, contributing $40 million, marking a decline from the previous year.
As of the first half of 2024, 231 active Israeli venture capital management companies are managing 440 active and fully invested funds. Viola Group manages the largest number of funds, followed by Pitango, JVP, and others.
