NFX, a venture capital firm active in Israel and the US, has raised US$325 million for its fourth fund, bringing its total assets under management to about US$1.5 billion.

The new fund is smaller than its previous US$450 million fund raised in 2021, reflecting a broader drop in startup valuations and early-stage investment levels.

The firm plans to focus new investments on AI, particularly in tools and applications rather than core infrastructure.