A Tougher Fundraising Climate for VCs

The venture capital industry is facing one of its most difficult periods in years. In H1 2025, Israeli VC funds raised only an estimated $300–350 million, according to the IVC–Gornitzky–KPMG Investors Report, compared with more than $6 billion raised at the peak in 2021–2022. The number of funds successfully closing has also fallen sharply, highlighting the growing difficulty of securing capital in the current macroeconomic environment.

This sharp decline is driven by a combination of global headwinds: higher interest rates, tighter liquidity, reduced LP commitments, and a correction following years of record-breaking valuations. Many funds are now focusing on supporting their existing portfolios rather than leading new rounds. For startups, especially in capital-intensive sectors like biotech, deep tech, and space, this has created a serious funding gap.

The Rise of Co-Investment and New Players

With traditional VCs more constrained, co-investment models have moved to center stage. Rather than a single lead investor writing a large check, funding rounds are increasingly being filled by syndicates of multiple investors – including corporates, family offices, angels, and alternative investment platforms.

  • Shared risk, shared reward – Multiple investors can participate in rounds that might otherwise stall.
  • Corporate venture arms are stepping in, often joining forces with VCs to provide strategic as well as financial backing.
  • LPs, family offices, and private investors are seeking more direct exposure to high-quality deals, co-investing alongside established funds.

Catalyst Investors’ Club: Unlocking the Co-Investment Opportunity

This is precisely where Catalyst Investors’ Club plays a strategic role. By giving accredited investors access to curated, late-stage venture opportunities, Catalyst provides a bridge between traditional VC capital and private co-investors.

  • Access to VC-led deals: Catalyst showcases startups already backed by reputable lead investors.
  • Lower entry points: With minimum investments starting at $50,000, private investors can participate in high-quality deals once reserved for institutional VCs.
  • Aggregated firepower: By pooling multiple investors, Catalyst Investors’ Club can help ensure rounds get fully funded, complementing the role of traditional VCs.
  • Global reach: Initially focused on Israeli innovation, Catalyst is expanding internationally, including a planned presence in Miami to connect investors across the Americas.

A Collaborative Future for Startup Funding

The data makes one thing clear: venture capital alone can no longer carry the weight of funding innovation. With fundraising down and dealmaking slower, the ecosystem must adapt – and it has, through collaboration.

  • Startups now routinely raise from syndicates rather than single leads.
  • Investors gain access to vetted opportunities through co-investment platforms like Catalyst.
  • VCs benefit from having trusted partners who can help them complete rounds even under tighter budgets.

For Catalyst Investors’ Club members, this is a timely opportunity: to step into the gap left by constrained VCs, co-invest in high-potential companies, and play an active role in sustaining the global innovation pipeline.
As the chart above shows, the fundraising landscape has changed dramatically. But with it comes a new model – one that is more inclusive, diversified, and resilient. Co-investment isn’t just a trend; it’s the future of venture financing.