(Bloomberg) -- Ibex Investors, a Denver-based venture capital firm, has raised $106 million for a new Israel-focused fund that plans to invest in as many as 15 early-stage startups. 

“Since Oct. 7, a lot of foreign funds have paused investing in Israel, which has created a vacuum in the market,” partner Nicole Priel, who runs Ibex’s Tel Aviv office, said in an interview. The fund will invest across different industries including software, cybersecurity and infrastructure. 

Ibex, which has nearly $1 billion in assets under management, has hired two people in Tel Aviv in the past month, including a new partner. The firm was founded in the US in 2003, and has been investing in Israeli companies since 2012, primarily in cybersecurity, enterprise software, and artificial intelligence.

Israel’s economy contracted by nearly 20% after the war began in October, as hundreds of thousands of military reservists were called up and businesses were forced to close. That capped a punishing year for Israeli tech startups, which raised the lowest quarterly funding total since 2018 amid the global downturn, mass anti-government protests, and its largest war in decades.

Read More: Israeli Startup Funding in Fourth Quarter Falls to Five-Year Low

Still, some local venture capital firms have announced that they’ve raised funds this year. Red Dot Capital Partners raised a $250 million fund for startups in the early growth stage in January and Herzliya-based Vintage Investment Partners has raised $200 million for a fund that aims to back as many as 20 growth-stage technology startups in Israel, the US, and Europe.

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