Enterprise startup-focused venture capital firm YL Ventures GP Ltd. has closed its third fund at $75 million, which it says was oversubscribed 25 percent above its target of $60 million.

The new fund, which is planned to build on the success of its predecessors, will invest in seed-stage Israeli companies in high-growth sectors, including cybersecurity, enterprise software, autonomous vehicles, drone technologies and virtual and augmented reality.

The YLV III fund, headed by Silicon Valley-based Managing Partner Yoav Andrew Leitersdorf (pictured, third from left), will seek to invest in two to three companies per year with seed investments in the $2 million to $3 million range, with a portion of the fund reserved to participate in follow-on rounds in portfolio companies.

“Israel is a well-known powerhouse for cybersecurity and related technological innovation,” Leitersdorf said in a statement. ” We are able to harness that expertise to expand into new sectors that leverage artificial intelligence, machine learning, computer vision, big data and robotics, all of which are highly relevant to our new fund. While remaining extremely selective, we can vet ideas fast, devote substantial attention to helping our companies scale, and provide a lot of value post-investment.”

YL Ventures’ previous funds, claimed by the firm to be in the top quartile of all North American venture capital funds in their returns, has had some notable exits. They include cloud access security firm FireLayers Inc. which was acquired by Proofpoint for $55 million in October, and BlazeMeter Inc., a DevOps performance testing platform firm acquired by CA Technologies Inc. for $100 million in September.

YL Portfolio companies raising money recently include software container management startup Twistlock, which raised $17 million Series B in April, and Hexadite, an Israeli security startup that closed an $8 million Series A round led by Hewlett Packard Enterprise Co. in February.

Photo: YL Ventures