Benchmark Capital has closed a $220m fund dedicated to Israeli hi-tech companies.
Institutional investors, companies including Cisco Systems, Rational Software, Mercury Interactive and Infineon Technologies and high net worth individuals contributed to the fund.
The fund will be managed by Mark Kremer in California and Arad Naveh and Nachman Shelef in Israel. Deals will initially be worth between $2m to $5m and could grow to about $10m or $15m in follow-on rounds.
Benchmark Israel has made five investments, including a $2m round for Lycium and a contribution to a $5m round for Integra5.
Benchmark Capital was founded in 1995 and manages about $2bn. It focuses on early-stage investing.