Team8 raises $365m
Team8 raised $365 million, bringing its total assets under management to nearly $2 billion. $265 million will go to its third fund, and $100 million to follow-on investments. The fund targets AI-native startups in cybersecurity, software infrastructure, fintech, and digital health. It has already made nine investments and one exit, with Palo Alto Networks acquiring Koi Security for $400 million.
Venture capital firm Team8 has raised $365 million, bringing its total assets under management to nearly $2 billion. Of the new raise, $265 million will go to Team8's third fund and $100 million will be allocated to follow-on investments in existing portfolio companies. The new fund is managed by managing partners Sarit Firon and Liran Grinberg, alongside partners Ori Barzilay and Hadar Siterman. Team8 says the fund will invest in seed and series A founders building AI-native companies across cybersecurity, software infrastructure, fintech and digital health. The raise is high for the Israeli venture capital market, but only slightly larger than the $235 million raised for the firm's second fund, which closed in 2024. In August 2025 it was reported that Team8 was raising a $250-300 million new fund. The new fund has already made nine investments and even made a first exit before the fund was closed. Palo Alto Networks paid a reported $400 million to acquire Koi Security in February this year. Team8 did not disclose how much it invested in Koi Security, what its share of the company was, or the return to the fund from the exit. Among other companies in which Team8 is invested are Classiq, FundGuard, and Port. Altogether, Team8's portfolio comprises 65 companies. According to the firm, its portfolio companies have raised about $1 billion from other investors, $762 million of which was in the past year. Team8 believes that the expanding use of artificial intelligence by enterprises will create demand for companies that provide the infrastructure, data, identity, and security layers for operating AI systems. Besides its traditional investment activity, Team8 also works on a model of setting up companies in partnership with entrepreneurs. It employs more than 90 people and has a community of some 1,000 managers and experts from international companies who assist its portfolio companies. The current raise was completed at a time when the Israeli venture capital industry is staging a recovery in the scope of investment in companies, but raising capital for new funds is still challenging. Among the investors in Team8 are Walmart, Cisco, Moody's, AT&T, Softbank, and Temasek. The firm did not disclose which of these participated in the current raise or what the share of new investors was versus existing investors.