Israeli venture capital funds raised a total of $1.4 billion in 2016, with 12 first-time funds among the 23 VC funds raising money, according to a report by Tel Aviv-based IVC Research Center, which tracks the industry.

“VC funds managed to raise a considerable amount in 2016, surpassing expectations,” said Koby Simana, chief executive officer of IVC. “This echoes the oversubscription reported by the VC industry in the US, which was arguably the strongest year ever in VC fund raising. More capital will be raised in 2017 for new and existing funds, so with all this capital available, we expect local VCs to shift their primary focus in 2017 to making new investments, which will hopefully have a positive impact on the local high-tech ecosystem.”

As 2017 begins, more than $3.5 billion is available for investment by Israeli venture capital funds, the report said. Of this amount, over $1.1 billion is earmarked for first investments, with the remainder reserved for follow-on investments.

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There are currently 49 VC funds that are still in the process of raising funds, 25 of which have made first closings. The other 24 VC funds have not made any investments yet, with half being brand-new funds. With nearly $1 billion expected to be raised in 2017, IVC said it believes that as much as half a billion dollars will be available for first investments over the coming year.

In 2016, four Israeli VC funds raised more than $100 million each. OrbiMed Israel Partners closed its second fund with $307 million. Vintage Investment Partner’s ninth fund raised $200 million, having closed its $125 million eighth fund just a year earlier, followed by Aleph’s second fund, with $180 million raised, after its first fund was closed in 2013. Red Dot Capital Partners, a first-time growth fund, raised $150 million and was closed in early 2016.