NFX to stop raising outside capital and shift to self-funded model
The U.S.-Israeli VC firm will complete its fourth fund before investing the partners’ own capital in startups.
NFX, the U.S.-Israeli venture capital firm co-founded by Gigi Levy-Weiss, one of the most prominent investors in Israel’s tech industry, is shifting to a self-funded model and will stop raising capital from external investors after completing its fourth fund.
James Currier, NFX’s co-founder and partner, announced the move in a post on X. The firm said its four managing partners will remain together and that NFX will continue investing from Fund IV through 2027. The fund has eight remaining large Seed investments to make.
Once Fund IV is fully deployed, NFX will invest the partners’ own capital, writing checks of between $100,000 and $3 million per deal. Under the new model, the firm will be able to invest at any stage, in any sector and with any time horizon, without having to lead rounds, take board seats or meet ownership targets.
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NFX's Israeli partners Gigi Levy-Weiss (from left), Sarai Bronfeld, and Omri Amirav-Drory.
(Photo: Tamir Levy)
In recent years, NFX has also launched initiatives aimed at supporting Israeli startups during periods of heightened uncertainty. Earlier this year, the firm revived its FAST program, offering investments of up to $6 million per company, with a commitment to make an investment decision within one week and transfer funds on an accelerated timeline. It was the third FAST investment marathon NFX had held since October 7, 2023.
The initiative was led by NFX’s Israeli partners, Levy-Weiss, Sarai Bronfeld and Omri Amirav-Drory, and was aimed at providing faster access to capital for Israeli startups, particularly in AI, at a time when local investment activity had slowed.
Founded in 2015, NFX initially operated as an accelerator before switching in 2017 to a traditional venture capital model backed by external limited partners (LPs). Since then, the firm says it has raised $1.5 billion across five funds and additional special-purpose vehicles, investing in around 42 companies that have reached unicorn status.
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NFX has maintained a significant presence in Israel, with an office in Herzliya and investments in companies including Similarweb, Fireblocks, Papaya Global, Moon Active, Playtika, Plarium and Global-e. Its latest fund, Fund IV, raised $325 million, following the $450 million Fund III launched in 2021.
NFX said its decision to return to a self-funded model was partly driven by the changes AI is bringing to the way startups are built and to the broader venture capital ecosystem. The firm also pointed to Homebrew, which made a similar shift in 2022, as an influence on its decision.
NFX said it will continue supporting its existing portfolio companies and LPs for at least the next 10 years. After 2027, the firm will continue investing under the NFX name, but with smaller checks funded by the partners themselves.
