Team8 raises $365m

$265 million will go to Team8’s third fund, which has already made an exit, and $100 million will be allocated to follow-on investments in existing portfolio companies.

Venture capital firm Team8 has announced that it 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 that the fund will invest in seed and series A founders building AI-native companies across cybersecurity, software infrastructure, fintech and digital health.

The raise for the new fund 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.

Focus on AI 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, a developer of quantum computing software which has so far raised over $200 million; FundGuard, a developer of software infrastructure for investment management which has completed a $100 million fund-raising round; and Port, developer of a platform for managing software development processes, which recently raised $100 million at a valuation of $800 million.

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. It intends to invest in companies that develop tools for AI agents, development platforms, and systems that enable enterprises to implement AI technology securely.

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.

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"AI is fundamentally rewriting the economics of company building. Developing breakthrough technology has never been easier; building a company that endures has never been harder," said Team8 managing partner Sarit Firon, Managing Partner at Team8. "As AI capabilities continue to evolve at a pace none of us has seen before, competitive advantage won't come from the model underneath a product- it will come from solving fundamental enterprise problems that stay relevant across technology cycles. That's exactly where we believe the next generation of category-defining, AI-native companies will be built, and it's exactly where our enterprise Village communities and our go-to-market, recruiting and AI teams give founders an edge nobody else can offer."

Team8 co-founder and managing partner Liran Grinberg said that small teams were now able to attain a working product faster, and so the challenge had moved from technology development alone to identifying a significant problem, reaching customers, and building a distribution network. He said that the combination of the technological experience accumulated in Israel and the changes being wrought by AI would spawn a new generation of local companies.

Published by Globes, Israel business news - en.globes.co.il - on August 12, 2026.

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