Israeli venture firm Team8 raises $365m. to invest in AI-native start-ups

Israeli venture firm Team8 raised $365 million to invest in AI-native startups, including $265 million for its third fund and over $100 million for follow-on investments. The fund will focus on Seed and Series A companies in cybersecurity, software infrastructure, fintech, and digital health. Team8's total assets under management now approach $2 billion across eight funds since 2014. The firm has already recorded an exit with Palo Alto Networks' acquisition of Koi Security for about $400 million.

Israeli venture firm Team8 has raised $365 million in new capital to invest in the next generation of artificial intelligence (AI) companies. The new capital includes $265 million for Team8 Capital's third fund and over $100 million earmarked for follow-on investments in existing portfolio companies. The fund is led by managing partners Sarit Firon and Liran Grinberg, alongside partners Ori Barzilay and Hadar Siterman. It will focus primarily on Seed and Series A companies developing AI-native technologies across cybersecurity, software infrastructure, fintech, and digital health. The latest fundraising brings Team8's total assets under management to nearly $2 billion across eight funds launched since the firm was founded in 2014. The fund has already recorded an exit before reaching its final close: in February, Palo Alto Networks reported an agreement to acquire Israeli cybersecurity start-up Koi Security in a deal valued at approximately $400 million. Team8 said the new fund comes at a critical moment for enterprises, as the rapid development of generative and agentic AI is forcing companies to rethink their products, workflows, infrastructure, and security models. According to a survey presented at Team8's latest CISO Village Summit, 97% of the 111 security leaders surveyed said their organizations had already begun adopting AI agents, and 80% were already running them in production. In parallel, respondents rated their confidence in their ability to secure AI at just 2.32 out of five. Firon said Team8 believes that as AI capabilities evolve, the strongest companies will be those aimed at solving fundamental enterprise problems. The firm plans to invest in AI infrastructure, orchestration, identity, data, and cybersecurity.