Two Israeli venture capital funds have this week raised $450m (€347m) in a move analysts predict will help the country return to fundraising levels last seen in the 1999 heyday of technology investment.

The Israeli arm of Benchmark Capital, the venture capital firm, has just closed its second early-stage technology fund at $250m (€193m), while Carmel Ventures, an Israeli venture capital provider, has attracted $200m to its second fund for Israeli technology investments.