TLDR:
- Index Ventures has raised $2.3 billion for two new funds focused on artificial intelligence, investing in Israeli startups.
- The fund has made 12 investments totaling $186 million in local companies in Israel since establishing an office there in 2022.
Venture capital fund Index Ventures has raised $2.3 billion for two new funds focusing on artificial intelligence, with intentions to also invest in Israeli startups. The first fund, amounting to $800 million, will focus on investments in new companies at the initial stages of activity, while the second fund totaling $1.5 billion will specialize in large and late-stage rounds in mature companies. These funds, although slightly lower than Index’s previous funds, still represent an impressive sum, indicating a renewed interest in venture capital among institutional investors worldwide.
Index Ventures’ significance in Israel lies in its specialization in early-stage investments, which have recently experienced a slowdown. Operating in Israel since 1996, Index established an official representative office in Israel in 2022, managed by Juriaan Duizendstraal. The fund has made 12 investments totaling $186 million in local companies, including $60 million in five companies since October 2023, undeterred by the outbreak of war in the region. In total, Index has invested around half a billion dollars in 32 Israeli companies.
Index’s major investment in Israel is in the cyber company Wiz, participating in a giant round at a $12 billion valuation. Other notable investments include leading a capital raise for Empathy and Seed rounds for PointFive and Apex, both cyber companies. Index’s main focus in Israel has been on cyber, but globally, it is increasing its emphasis on generative artificial intelligence. This may indicate a shortage of companies in this field in Israel.
