NFX Closes $325M Fund IV Backing Israeli, US Early-Stage Tech Startups

Venture capital firm NFX has successfully closed its fourth fund, raising $325 million to invest primarily in early-stage startups in Israel and the US, particularly in Silicon Valley. With over $1.5 billion under management, NFX focuses on sectors such as AI, biotech, cybersecurity, space technology, and consumer platforms, aiming to back founders who are obsessive, creative, and resilient. The firm's strategy includes a geographic focus on the Bay Area and Israel, leveraging these innovation hubs despite regional challenges such as the recent Gaza war, which has not deterred Israeli founders' focus and determination. NFX plans to invest in about 50 to 60 startups from this fund, emphasizing emerging themes like AI-driven bioplatforms, cybersecurity at the application layer, and non-traditional sectors including women's health and space. The fund's size is smaller than the previous $450 million fund due to lower startup valuations and reflects a cautious but optimistic outlook on Israel's economic and high-tech future. NFX's leadership highlights their commitment to backing companies that integrate AI across various layers and their belief in Israel's potential for an unprecedented economic boom if current conditions improve.