Viola Ventures, the Israeli venture capital heavyweight, announced Monday that it has closed two new funds totaling $250 million to drive the next wave of Israeli early-stage Internet startups. The move comes despite regional difficulties, with managing partner Omry Ben David citing over $11 billion in tech funding and roughly $70 billion in mergers and acquisitions this year as evidence that the ecosystem flourishes.
About $100 million flows into Viola’s Conviction Fund I, already fully deployed for follow-on bets in high-fliers from its existing portfolio. The rest seeds Viola Ventures VII, its seventh flagship early-stage fund targeting seed, Series A, and incubation rounds in hot areas like vertical AI, enterprise AI, fintech, AI infrastructure, cybersecurity, quantum tech, and defense systems. Fund VII hits first close but launches fully in the first half of 2026, as the team wraps investments from Ventures 6. Viola eyes around 20 fresh deals, led by managing partners Omry Ben David, Zvika Orron, and co-founder Shlomo Dovrat, with new partner Alex Shmulovich and principals Tal Abuloff and Alon Cinnamon on board.
Dual Funds Target Scale-Ups and Fresh Builders:
Conviction Fund I zeroes in on secondary transactions to double down on outliers already showing massive traction. This lets Viola pump more capital into winners without waiting for new rounds, a tactic honed over 25 years backing over 150 companies like ironSource, Payoneer, Redis, Pagaya, Lightricks, and immunai.
Ventures VII picks up the early baton, hunting visionary founders from day zero in fast-moving fields. The firm stresses its hands-on support, from ideation to unicorn status, with a track record of 15% of Israel’s unicorns off just 0.5% of 2021’s deployed capital. Avi Zeevi, Viola Group co-founder, sticks around as mentor and investment committee member. The team rounds out with analysts like Assaf Schreiber, blending experience with fresh eyes to spot the next big swings.
Leadership Circle Packs Tech Titans as Advisors:
Alongside the funds, Viola launched its Leadership Circle, a powerful network of investors who serve as both board members and strategic consultants for portfolio companies. Jim Whitehurst, former IBM president, Red Hat CEO, and Delta COO; Galit Scott of Payoneer; Cristobal Conde from SunGard (now FIS); Eyal Waldman, founder of Mellanox acquired by NVIDIA; Yiftach Shoolman, co-founder of Redis; Reuven Aronashvili, CEO of CYE; and Lior Gerenstein, CTO of Via, are among the notable individuals.
Tomer Bar-Zeev, ironSource co-founder acquired by Unity, joins too. This crew brings real-world scale-up chops, from global hyperscalers to defense tech, to guide startups through growth pains and exits.Ben David called the dry close on VII a vote of confidence in Israel’s grit, even amid tough years. “The ecosystem grows at record pace,” he said, eyeing sectors where Israeli edge shines brightest.
Israeli Tech Bets Use New Capital to Overcome Obstacles:
Viola Ventures’ AUM is less than $6.5 billion. The largest IT investment firm in Israel is called Viola Group. It has powered hits like ProteanTecs, PayZen, Faye, Duetti, and PhaseV since 2000, showing that early bets pay off financially.In the midst of global tumult, Israeli startups are chasing AI dominance, cyber defenses, and quantum breakthroughs with fresh funding. Despite the risks, LPs were drawn in by funding that exceeded $11 billion YTD and M&A that approached $70 billion. Ventures VII begins operations following the conclusion of Ventures 6, keeping the pipeline active. Founders building in focus areas receive the call: Viola wants in from the start, backed by a network that few can match.Israel’s deep tech hubs, battle-tested talent, and exit options make it a desirable destination for global giants. As colleagues pull back, Viola doubles down, betting that builders will yield the next unicorn.v
