Team8 raised $365 million for a new venture capital fund
$265 million will be invested in young companies at the seed and Series A stages, including in the fields of software infrastructure and artificial intelligence, and more than $100 million is intended for follow-on investments in portfolio companies. The new fund has already recorded its first exit with the sale of Koi Security to Palo Alto Networks for approximately $400 million.
The Team8 fund announced on Wednesday that it has raised $365 million, bringing its total assets under management to approximately $2 billion. Of this amount, $265 million was raised for the third Team8 Capital investment fund, and more than $100 million is earmarked for follow-on investments in prominent portfolio companies.
The new fund will be managed by Sarit Firon and Liran Grinberg, alongside partners Uri Bar-Zilay and Hadar Siterman Norris. It plans to invest in companies at the seed and Series A stages in the fields of cybersecurity, software infrastructure, artificial intelligence (AI), fintech, and digital health.
The current fundraising, while significant for the Israeli venture capital market, reflects moderate growth compared to the previous Team8 Capital fund. The second fund, which closed in 2024, totaled $235 million, making the third fund approximately 13% larger. As early as August 2025, it was reported that Team8 was in the process of raising $250–300 million.
Focus: Artificial Intelligence
The new fund has already made nine investments and recorded its first exit before its final closing. The cyber company Koi Security was sold to Palo Alto Networks in a deal estimated at approximately $400 million, just months after Team8's investment. Team8 did not disclose the specific amount invested in Koi, its stake, or the return generated from the deal.
Other companies in the Team8 portfolio include Classiq, which develops software for quantum computing and has raised over $200 million; FundGuard, which develops software infrastructure for investment management and completed a $100 million funding round; and Port, which developed a platform for managing software development processes and recently raised $100 million at an $800 million valuation.
In total, Team8 holds a portfolio of 65 companies. According to the fund, its portfolio companies have raised about $1 billion from other investors, with approximately $762 million raised in the last year alone.
Team8 estimates that the expansion of AI usage in organizations will create demand for companies providing the infrastructure, data, identity, and security layers necessary for operating AI systems. The fund intends to focus on companies developing tools for AI agents, development platforms, and systems that allow organizations to securely implement the technology.
Alongside traditional investment activity, Team8 operates under a model of building companies in collaboration with entrepreneurs. The fund employs over 90 people and manages a community of approximately 1,000 executives and experts from international companies to assist its portfolio firms.
Fundraising in a challenging period
The fundraising was completed at a time when the Israeli venture capital industry is showing a recovery in investment volumes, though raising capital for new funds remains a challenge. Among Team8's investors are international entities including Walmart, Cisco, Moody's, AT&T, SoftBank, and Temasek. The fund did not specify which of these participated in the current round.
According to Sarit Firon, managing partner at Team8, completing the fundraising during a period of uncertainty expresses confidence from international investors. She added that while AI makes it easier to develop new products, it also increases competition and makes it difficult for companies to create a lasting advantage.
Liran Grinberg, co-founder and managing partner, stated that small teams can now reach a working product much faster, shifting the challenge from developing technology alone to identifying significant problems, reaching customers, and building distribution systems. He believes the combination of Israel's technological experience and the changes brought by AI could create a new generation of local companies.
