Israel's VC and startup industry headed for collapse?

Is Israel's venture capital and start-up industry headed for collapse? So says Zeev Holzman of Giza Ventures, but others disagree (Hat Tip: Gary P). Famously and strikingly, last year zero dollars in new venture funds were raised. This year things are looking up, with another big Israeli VC, Pitango, raising $350 million. But the picture is still dire.Why is Israel, the "Startup Nation" with