NFX raises $325 million for new fund, Levy-Weiss predicts ‘a new wave of global giants’ from Israel
Venture firm NFX closes its fourth fund as co-founder Gigi Levy-Weiss sees opportunity in Israel’s maturing tech sector and AI boom.
Venture capital firm NFX has announced the closing of its fourth fund, raising $325 million. The firm, which now manages approximately $1.5 billion in total assets, completed the round relatively quickly at the end of 2024. NFX is led in Israel by founding partners Gigi Levy-Weiss and Omri Drory, along with partner Sarai Bronfeld, and in the United States by Pete Flint, James Currier and Morgan Beller. To date, NFX has invested in nearly 200 startups across both ecosystems.
Levy-Weiss told Calcalist that the new fund is smaller than the previous one, $450 million raised in October 2021, reflecting the decline in startup valuations and early-stage investment sums: “It wasn’t difficult for us to raise the money. The round closed quickly at the end of 2024, and we are only now beginning to invest from it. It was faster because it’s smaller than the 2021 fund, and we only included those who responded quickly to the call for capital. The lower entry valuations created a sense of scarcity, and the fund closed very quickly.”
NFX’s new investments will center on artificial intelligence (AI), aligning with global trends but emphasizing specific layers within the AI stack.
“Everything today is AI, no matter what you invest in,” said Levy-Weiss. “We see AI as divided into layers, base, tools, and applications. At the base level, we don’t think there’s room for young companies. We’re focused on the tools layer and on applications, from biology and gaming to cybersecurity and productivity tools, ensuring that everything we back integrates AI.”
Despite the ongoing war and economic uncertainty, Levy-Weiss expressed cautious optimism about Israel’s future: “I’m very hopeful. If we’re smart enough to use this moment positively, Israel could experience an economic boom like we’ve never seen before, not only in high-tech, but also in manufacturing and tourism. The economy feels like a charged spring waiting to be released. If the agreements are implemented, we’ll see a boom like no other.”
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He added that Israel’s startup ecosystem is maturing, with capital concentrating around stronger companies: “We see more money going into fewer companies, with a focus on quality. That’s not a problem, it’s the sign of a maturing industry. If we focus on building companies rather than just short-term returns, there’s potential for a new wave of global giants to emerge from Israel.”
Founded in 2015, NFX has created and sold ten companies worth over $10 billion and invested in more than 25 unicorns. The firm focuses on Seed and Pre-Seed rounds, backing startups with strong network effects.
NFX’s portfolio includes Lyft, DoorDash, Patreon, Poshmark, Mammoth Biosciences, Global-e, Similarweb, MyHeritage, Playtika, Plarium, Moon Active, and Trulia. Levy-Weiss emphasized that NFX remains deeply committed to the Israeli tech ecosystem even during turbulent times: “This is one of the largest Seed funds on the market. We believe Israeli entrepreneurs have the speed, resilience, and vision to lead the AI era, and we’re here to back them. Good times are upon us - we’re in a very good place, and we deserve some good news.”
