US-Israeli Venture Fund Vine Ventures Raises $236 Million

Vine Ventures, a US-Israeli venture capital fund, announced on Wednesday the successful closure of its third fund, raising $236 million, exceeding its initial target. This latest fundraising brings the total assets under management to over half a billion dollars within five years of its establishment. The fund, which operates between the US and Israel with offices in San Francisco, Boston, New York, and Tel Aviv, typically divides its investments equally between the two countries. However, a significant portion of its previous fund was concentrated in Israeli companies, a trend expected to continue with the new fund, where half of the allocation is designated for Israeli startups.

Vine Ventures has gained public attention for its early investments in prominent companies, including Wonderful, an AI firm now considered one of Israel's fastest-growing, and EON, a data backup company founded by entrepreneurs from CloudEndure, which was acquired by Amazon. The fund was also among the early investors in Ryber, a cybersecurity company founded by the Paragon founders, which achieved a $1.5 billion valuation before its official establishment.

The fund was co-founded by Eric Reiner, formerly of Dynamic Yield and Insight Partners, and Dan Pobitski, formerly of TA Associates. Adam Walkin, previously an investment manager at General Catalyst, also joined as a partner. Gary Reiner, Eric's father and former CIO of General Electric, serves as a senior advisor, alongside other notable advisors like Michael Linton, Chairman of Snap, and Bob Mylod, Chairman of Booking.com.

Vine Ventures has cultivated strong connections with other major venture capital firms, including Sequoia, Thrive Capital, Founders Fund, and General Catalyst. The fund has also attracted well-known figures to its operations, such as Noa Argamani, who joined as Head of Community, and Idan Tendler, founder of the PlaceIL initiative, who serves as a venture partner. The fund's investments extend beyond Israel, including notable US company Carta, which is nearing an $8 billion IPO, and French ad-tech firm Essor. However, not all investments have been successful, with Vine Ventures being an investor in insurtech company Hippo, whose stock has fallen significantly since its IPO.