NFX raises $325m fourth VC fund

In 2025, a cautious recovery has been evident in tech fundraising, after 2024 was one of the most difficult years in the history of the global venture capital industry, during which only $76.1 billion was raised – the lowest level since 2019. According to S&P Global, the first half of 2025 already saw a 25% rise in the volume of fundraising compared with the corresponding period last year. In line with this recovery, venture capital firm NFX today announced the raising of a fourth fund totaling $325 million.

NFX, which invests in early-stage companies through seed and pre-seed rounds is managed in Israel by Gigi Levy-Weiss, Sarai Bronfeld and Omri Drory, alongside five partners in the US. Since it was founded in 2015, NFX has invested in almost 200 companies, more than 80 of which are Israeli. Among the fund’s notable investments are companies such as SimilarWeb, Fireblocks, Papaya Global, Moon Active and Playtika.

NFX’s previous fund, which was closed in October 2021, amounted to $450 million and was one of the largest seed funds worldwide at the time. Levy-Weiss tells “Globes” that about 40% of NFX’s investments are in Israel, but the fund also maintains extensive activity in Silicon Valley. This combination, he explains, made it easier to raise the fourth fund during a challenging period for the venture capital market.

“Geographical diversification helped us raise the fourth fund more easily. Investors see that we know how to combine more stable markets with places where innovation is born out of difficulty,” said Levy-Weiss, adding, “Israel is becoming a better and more interesting place to invest than other places.”

The next promising companies in Israeli tech

Levy-Weiss says NFX’s new fund will invest in about 50 new companies. He explains that the average investment in each company will be around $4-5 million. According to him, the fund plans to focus on areas where Israel has a clear advantage, including cybersecurity, DevOps and developer tools, but also on “AI infrastructure” – companies that build the base layer on which AI technologies will operate in the coming years – security systems, data management, and software solutions that allow organizations to develop, train and operate AI models in an efficient and secure manner.

He adds that NFX recognizes growing potential in AI consumer areas. “We think, unlike many others, that AI will create a new wave of products for end consumers and not just for companies,” he says. “We recently invested in an Israeli company that is developing an AI-based virtual friend for communities of people, and it is already generating millions of dollars in revenue. In general, we believe that the consumer world is facing a significant leap thanks to this technology.”

Alongside investments in AI, the fund continues to be attracted to the cryptocurrency sector, in which it has been active for years. “We have gone through several stages in the crypto world,” explains Levy-Weiss. “Initially, the only value created was an asset like Bitcoin, which holds value in itself. Companies that enabled trading, such as Coinbase and eToro, and technological infrastructures such as our Fireblocks and Utila, were created around it.”

Levy-Weiss stresses that in recent years another significant component has come into the picture – the stablecoin, a digital currency linked to the dollar. “It is a virtual representation of the dollar, at zero cost, with 100% certainty and immediacy,” he explains. “This capability has created a quiet revolution. All of a sudden, companies can make international transfers much faster, more efficiently and cheaper.”

Levi-Weiss adds that the maturation of the field is also leading traditional financial institutions to adopt new technologies. He recounts that the fund has already invested in several companies in the field, including Utilla and Ramp, which operate around payment services and blockchain infrastructure. “The integration between the worlds of crypto and fintech is just beginning,” he says, “and we believe that it will expand significantly in the coming years.”

“Israeli entrepreneurs are coping with a complex reality”

During the fundraising period, the fund was asked more than once about its activities in Israel and the ability of entrepreneurs to continue operating during a war. “We received a lot of questions about Israel, about the war, about whether entrepreneurs can really concentrate on building companies when the world is burning,” says Levy-Weiss.

“But Israeli tech is always ‘delivering.’ The entrepreneurs put in more effort, everyone is working hard and thinking about the results.” According to Levy-Weiss, although the security situation is challenging, most of the Israeli companies in which the fund has invested have not been significantly harmed. “I don’t think a large number of companies have really been affected,” he says. “Overall, the industry has managed to overcome this okay, assuming we move into a calmer period. There is no geopolitical problem here that cannot be overcome, this is an industry that knows how to adapt.”

He also observes that this characteristic of Israeli tech – continuing to operate under pressure – is also clearly visible to investors abroad. According to him, the combination of Israeli innovation and a global perspective is one of the fund’s significant assets. In addition, the fact that the fund is active in both Israel and the US allows for diversity and a connection between worlds.

“There is an ability here to maintain both worlds, both family and security and business,” he says. “Israeli entrepreneurs are coping with a complex reality but continue to think ahead and build. This is part of the DNA of local tech.”

“When you look at Israel from the outside, you see an industry that does not stop. There are people here who continue to work, find solutions and build companies even when the reality around them changes, and this is what makes us unique.”

Published by Globes, Israel business news – en.globes.co.il – on October 20, 2025.

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