It's part of a VC's job to go where investments pay off. Israeli startup investments have had an excellent ROI in aggregate, so of course foreign VCs go there.

It's part of a VC's job to go where investments pay off. Israeli startup investments have had an excellent ROI in aggregate, so of course foreign VCs go there. In contrast, the EU's regulatory environment is extremely difficult for startups. I have multiple entrepreneurial French and German friends who have told me their businesses (which they started while living in here in E. Asia) would have been impossible to do in their home countries without significant starting capital. In fact, three of them incorporated in Singapore, despite living elsewhere. Forming a US business via Stripe Atlas or Firstbase is also common and relatively painless, especially if it's an LLC.