Vine Ventures has closed a $236 million fund, its largest ever, surpassing its original fundraising target and pushing the five-year-old venture capital firm past $500 million in total assets under management. The firm said roughly half of the new fund’s capital is earmarked for Israeli companies, reinforcing a strategy built around what it calls the U.S.-Israel technology corridor.
A Rapid Climb From $50 Million to $236 Million
According to Calcalist CTech, Vine Ventures raised $236 million for its third fund, 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 outlet notes the firm’s first fund totaled $50 million, followed by a $140 million second fund and now the $236 million third fund — a trajectory that marks a steady acceleration in the size of each successive raise. Investors took part in the fundraising round for the new fund, and the firm has framed the close as its largest to date, per The Jerusalem Post.
Fund III is backed by limited partners that include global asset managers, family offices, and senior executives of global companies, according to a release distributed via PR Newswire. The firm’s investors believe the fund is at the beginning of its path and will identify further early-stage opportunities worth billions of dollars, per The Jerusalem Post.
Half the Capital Bound for Israel
Vine expects approximately 50% of its capital to be earmarked for Israeli businesses, the Calcalist CTech report states. The firm describes its approach as backing companies across the U.S.-Israel technology corridor, with Fund III set to invest in early- and growth-stage companies across enterprise software, AI infrastructure, cyber, and fintech in the U.S., Israel, and Europe, per The Jerusalem Post.
Since closing its previous fund, the firm has sharpened its focus on Israel, deepening its on-the-ground presence and sourcing while retaining its international mandate and U.S. footprint, per the same PR Newswire release. Fund II, for example, holds positions from seed in Eon, Wonderful, and Ornn, with the majority of that fund’s value concentrated in Israeli companies, according to The Jerusalem Post.
New Faces Join the Investment Team
The firm added Adam Valkin, formerly of General Catalyst, and Idan Tendler, formerly of Palo Alto Networks, to its investment team, the PR Newswire release states. Valkin leads the firm’s investment activity from Boston, while Tendler’s background at Palo Alto Networks adds cybersecurity expertise to the roster, according to The Jerusalem Post.
Joining as senior advisors are Michael Lynton, Gary Reiner, and Bob Mylod, per the release. Lynton is chairman of Snap Inc. and former CEO of Sony Entertainment, Reiner is former chief information officer of General Electric and an operating partner at General Atlantic, and Mylod is chairman of Booking.com, according to The Jerusalem Post.
Founder Frames the Strategy
Eric Reiner, founder and partner at Vine Ventures, said the firm invests along the strategic axis between the U.S. and Israeli technology ecosystems. He said the U.S. brings technology models, scale, and capital, while Israel builds underlying technology and application, security, and cyber layers, and that Vine aims to connect the two markets through deep engagement, according to The Jerusalem Post. Reiner also said the firm believes focused, involved partnerships with entrepreneurs generate exceptional results, and that Vine will continue that investment philosophy with its third-fund investments.
A Broader Surge in Israeli Tech Funding
The fund’s close lands amid a marked rebound in Israeli tech investment. Israeli technology companies raised approximately $3.6 billion across 91 funding rounds in the third quarter of 2026, a 53% increase from the same period a year earlier, according to The Jerusalem Post. The total raised since the start of the year has exceeded $11 billion, representing a 50% increase over the same period in 2025, with cybersecurity companies alone raising approximately $4.3 billion, or 38% of all funding, per the same report.
That momentum continued into October, when Israeli startups and technology companies announced at least $872 million in funding across 14 financing rounds and expansions, according to Calcalist CTech. Two deals, Upwind and Capitolis, together accounted for $620 million of that disclosed round value, the outlet reported.
