However, based upon information obtained from the source for the article, the Israel Venture Capital Research Center website (link: http://www.ivc-online.com/), the conclusion appears to be different. Here's a link to the release (.pdf): http://www.ivc-online.com/upload/archive/survey/IVC_Q3-11_Survey_PR-Eng-Final.pdf
The Bloomberg article focuses on the percentage of total capital raised from Israeli VC firms, and points out that of the total capital raised in 3Q2011, 18% was from Israeli VC firms, and states that this is the lowest amount since IVC started covering the industry in 1999. While the proportion of funding may be low at 18%, the total amount of funding is increasing. In my view, the story should have included all of the information provided in the above chart, which suggests a different conclusion from that in the story.