Vine Ventures has closed its third fund at $236 million, above the $200 million it set out to raise. The firm announced the close from Tel Aviv on November 11 2026. Fund III is its largest yet and takes Vine’s assets under management past $500 million, five years after Eric Reiner and Dan Povitsky started the firm in New York in June 2020.
The growth curve is steep for a seed investor. Fund I was about $53 million. Fund II closed at $140 million in June 2022, when Vine opened its Tel Aviv office in Sarona Market and said roughly half the money would go to Israeli startups. Fund III goes further. Since Fund II, Vine says it has sharpened its focus on Israel, deepened its local presence and sourcing, and kept its US footprint and international mandate.
Reiner frames the strategy as a corridor rather than a country bet. Vine, he says, is allocating capital across “the strategic corridor between the two most important technology ecosystems in the world.” In his telling, America brings capital, scale and the frontier AI models, while Israel builds the layer underneath that makes the technology work, plus applications, defense and cyber, where Vine has invested heavily.
Who is behind the money
Vine says Fund III is backed by new and returning limited partners: global asset managers, family offices and senior executives of global companies. In his own note on the close, Reiner thanked some of the world’s largest institutional asset managers and the Israel-aligned families and institutions who backed the firm early.
The team has grown too. Adam Valkin, formerly of General Catalyst, now leads Vine’s investing from Boston. Idan Tendler, formerly of Palo Alto Networks, has joined the investment team, bringing a cybersecurity operator’s background. Vine also formed a US senior advisory group: Michael Lynton, chairman of Snap and former CEO of Sony Entertainment; Gary Reiner, former CIO of General Electric and later an operating partner at General Atlantic; and Bob Mylod, chairman of Booking.com.
What the fund will buy
Vine writes first institutional checks, sometimes alongside larger multi-stage firms. Fund II’s seed positions include Eon, Ornn and Wonderful, the enterprise AI operating system company that has since raised a Series C (see 3v.org for its Series C). Vine also runs Grapevine, a program that backs emerging pre-seed managers.
Why it matters for Israeli founders
The timing says something. Raising a dedicated US-Israel fund above target in late 2026 shows that institutional money still wants exposure to Israeli tech, and wants it through managers with people on the ground in Tel Aviv. For Israeli founders at the earliest stage, another $236 million seed pool with a US network attached means one more lead investor that can open doors in New York, Boston and Silicon Valley from day one.
The open question is concentration. A fund built around defense, cyber and AI infrastructure rides the same themes as most of Israel’s venture market right now. Vine’s edge will depend on picking the companies that become the next Wonderful, not on being one more firm chasing them.