Key Takeaways
- • Vine Ventures completed a $236 million fundraising round for its third fund, exceeding its original target and marking the largest fund in the firm's history.
- • Total assets under management rose to over $500 million, five years after the firm was founded.
- • Approximately half of the new fund's capital is earmarked for Israeli companies, with the balance directed to the US and Europe.
- • The fund targets early-stage and growth-stage investments in enterprise software, AI infrastructure, cybersecurity and fintech.
- • Vine added a senior advisory group including Michael Linton, Gary Reiner and Bob Mylod, and hired Adam Valkin and Idan Tendler to its investment team.
Summary
Vine Ventures, a venture capital firm, announced the close of a $236 million fundraising round for its third fund, according to the firm's announcement reported by The Jerusalem Post. The fund surpassed its original fundraising target and is the largest in Vine's history. Following the close, the firm's total assets under management exceeded $500 million, five years after its founding.
Since closing its previous fund, Vine has concentrated its activity in Israel and deepened on-the-ground investment sourcing there, while maintaining a US presence and an international mandate. Roughly half of the third fund's capital is earmarked for Israeli companies. The second fund holds significant positions, starting at the seed stage, in three companies: Eon, Wonderful and Ornn, with the majority of that fund's value concentrated in Israeli companies. The third fund will continue this approach, investing in early-stage and growth-stage companies in enterprise software, AI infrastructure, cybersecurity and fintech across the US, Israel and Europe.
Eric Reiner, founder and partner at Vine Ventures, described the strategy as allocating capital along the axis between the two largest technology ecosystems. He said the US supplies technology models, scale and capital, while Israel builds the underlying layer that makes technology function, as well as application, security and cyber layers, where the firm has invested heavily.
Alongside the fund launch, Vine expanded its team and advisory group. The senior advisory group includes Michael Linton, chairman of Snap Inc. and former CEO of Sony Entertainment; Gary Reiner, former Chief Information Officer of General Electric and most recently an Operating Partner at General Atlantic; and Bob Mylod, chairman of Booking.com. Adam Valkin, formerly of General Catalyst, who leads the fund's investment activity from Boston, and Idan Tendler, formerly of Palo Alto Networks, joined the investment team.
Reiner said the firm's investors view the portfolio's performance to date as a basis for continued growth, and that Vine is "only at the beginning of the road," expecting to identify additional opportunities worth billions of dollars at the earliest stages.
Since closing its previous fund, Vine has concentrated its activity in Israel and deepened on-the-ground investment sourcing there, while maintaining a US presence and an international mandate. Roughly half of the third fund's capital is earmarked for Israeli companies. The second fund holds significant positions, starting at the seed stage, in three companies: Eon, Wonderful and Ornn, with the majority of that fund's value concentrated in Israeli companies. The third fund will continue this approach, investing in early-stage and growth-stage companies in enterprise software, AI infrastructure, cybersecurity and fintech across the US, Israel and Europe.
Eric Reiner, founder and partner at Vine Ventures, described the strategy as allocating capital along the axis between the two largest technology ecosystems. He said the US supplies technology models, scale and capital, while Israel builds the underlying layer that makes technology function, as well as application, security and cyber layers, where the firm has invested heavily.
Alongside the fund launch, Vine expanded its team and advisory group. The senior advisory group includes Michael Linton, chairman of Snap Inc. and former CEO of Sony Entertainment; Gary Reiner, former Chief Information Officer of General Electric and most recently an Operating Partner at General Atlantic; and Bob Mylod, chairman of Booking.com. Adam Valkin, formerly of General Catalyst, who leads the fund's investment activity from Boston, and Idan Tendler, formerly of Palo Alto Networks, joined the investment team.
Reiner said the firm's investors view the portfolio's performance to date as a basis for continued growth, and that Vine is "only at the beginning of the road," expecting to identify additional opportunities worth billions of dollars at the earliest stages.
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