Intel's (INTC) - Get Report $15.3 billion takeover of Mobileye (MBLY) , an Israeli technology company, will likely act as a catalyst for future investment into other late-stage startups in the country, according to California-based venture capital fund Bessemer.

The Israel Venture Capital Research Center has noted that fundraising in late-stage startups rose to $2.9 billion in 2016 from $2.4 billion in 2015 

"A concern over the years has been that compared to the U.S., Israel cannot produce outsized returns," said Bessemer partner Adam Fisher. "Mobileye is a perfect example of how a big business can be built in Israel and how a large corporate will not hesitate to pay a strategic premium for the business despite its location."