Team8, an Israeli venture group, has raised $365 million in new capital, bringing its total assets under management to nearly $2 billion. The funding will support AI-native enterprise startups, with a focus on cybersecurity, software, and AI infrastructure.
TL;DR
- Team8 raises $365M for new fund and follow-on investments, totaling nearly $2B in assets under management.
- The fund will invest in AI-native enterprise startups, particularly in cybersecurity, software, and AI infrastructure.
- Team8's portfolio companies have collectively raised about $1 billion, with $762 million in the past year alone.
What happened
Team8 has raised $365 million in new capital, comprising $265 million for its third fund and over $100 million for follow-on investments in existing portfolio companies. This brings the firm's total assets under management to nearly $2 billion.
The third fund, led by managing partners Sarit Firon, Liran Grinberg, Ori Barzilay, and Hadar Siterman, will primarily invest at the Seed and Series A stages in areas such as cybersecurity, software and AI infrastructure, fintech, and digital health.
Team8 has already made nine investments over the past year and recorded its first exit with the acquisition of portfolio company Koi Security by Palo Alto Networks for about $400 million in February 2026.
Why it matters
The new fund highlights the growing investor interest in AI-native enterprise startups, particularly those focusing on infrastructure and security. Team8's focus on well-rounded entrepreneurs who can develop products and sales organizations simultaneously reflects the evolving criteria for startup success in the AI era.
The firm's survey of senior security executives reveals a significant gap between AI adoption and security confidence, indicating a substantial opportunity for investments in AI-native security solutions. Team8 plans to focus on AI infrastructure, orchestration, identity, data, and cybersecurity.
For developers and startup founders, Team8's approach underscores the importance of building well-rounded teams capable of rapid product development and market execution. Investors can expect increased activity in AI-native enterprise startups, particularly in areas addressing security and infrastructure challenges.
Key facts
- Team8 raises $365 million in new capital, bringing total assets under management to nearly $2 billion.
- The third fund includes $265 million for new investments and over $100 million for follow-on investments.
- Team8 has made nine investments and one exit in the past year.
- Palo Alto Networks acquired portfolio company Koi Security for about $400 million in February 2026.
- Team8's portfolio companies have collectively raised about $1 billion, with $762 million in the past year alone.
- The fund will focus on Seed and Series A investments in cybersecurity, software and AI infrastructure, fintech, and digital health.
- Team8's survey found that 97% of organizations have begun adopting AI agents, but only 2.32 out of 5 in average confidence in securing those systems.
- Team8 was founded in 2014 and now manages nearly $2 billion across eight funds.
Context
Team8's focus on AI-native enterprise startups reflects the broader trend of increased investment in AI technologies and infrastructure. The firm's emphasis on well-rounded entrepreneurs and rapid product development aligns with the evolving landscape of startup success in the AI era.
The significant gap between AI adoption and security confidence highlighted by Team8's survey indicates a substantial opportunity for investments in AI-native security solutions. This gap is expected to drive increased activity in AI infrastructure, orchestration, identity, data, and cybersecurity.
Team8's approach underscores the importance of building well-rounded teams capable of rapid product development and market execution. This focus on comprehensive entrepreneurship is likely to influence how developers and startup founders approach building AI-native enterprise companies.
