I would assume VC's are dominantly US-based, and US-based VC's tend to be able to weather the landscape of American markets better than foreigners.

Partially. The issue is capital - even Wiz largely raised thanks to Sequoia, Insight Partners, and Index Ventures. American funds are much larger and are able to finance later stage rounds. Most Israeli VC funds end up financing earlier rounds and can't neccesarily participate in later rounds and thus have an incentive to exit earlier.