Vine Ventures raises $236 million for third fund, bringing assets under management above $500 million
The U.S. firm, which invests across the American and Israeli technology ecosystems, says its latest fund exceeded its initial target. It expects roughly half of the capital to go toward Israeli companies, continuing a strategy that has produced significant early-stage stakes in Eon, Wonderful and Ornn.
U.S. venture capital firm Vine Ventures has raised $236 million for its third fund, its largest to date, exceeding its initial fundraising target and bringing its total assets under management to more than $500 million just five years after the firm's founding.
The firm's partners include co-founders Eric Reiner and Dan Povitsky, Senior Advisor Gary Reiner, and Partner Adam Valkin. Idan Tendler serves as a Venture Partner, leading deal execution. The firm has also recently appointed Noa Argamani, a survivor of Hamas captivity, as its Platform Manager. In the role, she manages Vine's community of entrepreneurs, helping foster connections among portfolio companies and with outside businesses.
The new fund is Vine's third. Its first fund totaled $50 million, followed by a $140 million second fund and now the $236 million third fund. The firm's portfolio includes companies such as Eon, Wonderful, Qodo, Ora and Maven Robotics. Investors in the latest fund include leading global asset managers, prominent family offices and CEOs of some of the world's largest corporations. The fund's backers include both new and returning limited partners.
Since closing its second fund, Vine says it has sharpened its focus on Israel, expanding its local presence and deal sourcing while maintaining its U.S. footprint and international investment mandate. The firm describes its strategy as backing companies across the U.S.-Israel technology corridor, connecting the two ecosystems rather than treating them as separate markets.
"Our fund invests at the very earliest stages, often as the first investor, in companies that aspire to become major players rather than those developing a narrow, point solution. I look for companies that aim to be global from day one," Eric Reiner, founder and partner at Vine Ventures, told Calcalist.
"Through this fund, we have already begun investing in AI-driven defense companies, including infrastructure, an area consistent with our previous investment focus. We are a U.S.-based fund that invests in both American and Israeli companies, and we typically expect about half of our investments to be in Israel. We usually invest before the major venture capital firms, or alongside them. We currently have five co-investments with Sequoia. While we prefer to invest early, we are also happy to collaborate with these larger funds," he said.
In a statement announcing the fund, Reiner emphasized the strategic relationship between the two markets. "We're not simply investing in Israel, we're allocating capital across the strategic corridor between the two most important technology ecosystems in the world. America brings capital, scale, and the frontier models. Israel builds the layer underneath that makes the technology actually work, in addition to the application, defense and cyber layer, where we have invested heavily. Our approach is to reach deep into both and connect them in ways no one else can."
Reiner also discussed Argamani's appointment. "Noa Argamani is a rare talent who provides us with significant value on a global level. She is focused on our next chapter. We are friends, and I am very happy to have her on board. She helps us connect with clients and partners. That is her primary focus."
"She currently guides entrepreneurs as they meet with leading companies in San Francisco, and she oversees the platform that connects them," Reiner added.
He also expressed confidence in the next generation of Israeli entrepreneurs. "I believe the current trend in Israel is that entrepreneurs have learned to build large-scale companies from the very beginning, while also helping to establish a significant infrastructure in the United States. I anticipate that this cohort will yield major IPOs as well as significant mergers and acquisitions."
Vine's second fund has built substantial stakes, beginning at the seed stage, in three of what the firm describes as some of the world's fastest-growing companies: Eon, Wonderful and Ornn. The majority of the second fund's value is concentrated in Israeli companies. The third fund is expected to continue that approach, investing in category-leading companies across the corridor, with approximately 50% of its capital earmarked for Israeli businesses.
Alongside the new fund, Vine has established a senior advisory group comprising prominent figures from the U.S. business world. The group includes Michael Lynton, chairman of Snap and former CEO of Sony Entertainment; Gary Reiner, former chief information officer of General Electric and, more recently, an operating partner at General Atlantic; and Bob Mylod, chairman of Booking.com.
Vine has also expanded its investment team, bringing on Adam Valkin, formerly of General Catalyst, to lead the firm's investment activities from Boston, alongside Idan Tendler, formerly of Palo Alto Networks.
"At Vine, we have always believed in the power of focused, hands-on partnerships with entrepreneurs to generate exceptional results, and investments from our third fund will continue to embody this philosophy," Reiner said. "Our investors believe that, given the success of our portfolio companies to date, and with the addition of Adam, Michael and Idan, who bring a wealth of experience, Vine is only just getting started. We will continue to identify further multi-billion-dollar opportunities at their very earliest stages."
