Team8, an Israeli venture group, has raised $365 million in new capital to invest in AI-native enterprise startups. This brings its total assets under management to nearly $2 billion.
TL;DR
- Team8 raises $365M for new fund and follow-on investments, focusing on AI-native enterprise startups.
- The fund will invest primarily at Seed and Series A stages in cybersecurity, software, AI infrastructure, fintech, and digital health.
- Team8's portfolio companies have raised about $1 billion from venture investors overall.
What happened
Team8 has raised $365 million in new capital, including $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 and Liran Grinberg alongside partners Ori Barzilay and Hadar Siterman, will focus on investing at the Seed and Series A stages. The fund's investment areas include 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
This funding round positions Team8 to capitalize on the growing trend of AI-native enterprise startups, which are reshaping various industries.
The firm's focus on software and AI infrastructure aligns with the increasing importance of these technologies in enterprise environments. Team8's investment strategy emphasizes the need for well-rounded entrepreneurs who can manage both technological and business aspects.
The firm's survey highlights a significant gap between AI adoption and security, indicating a strong investment opportunity in AI-native companies developing infrastructure that enables secure and rapid AI deployment.
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 over the past year and recorded its first exit with Koi Security's acquisition by Palo Alto Networks for about $400 million.
- Portfolio companies have raised about $1 billion from venture investors overall, including roughly $762 million over the past year alone.
- Team8's portfolio includes companies like Classiq, FundGuard, and Port, which have raised significant funding and achieved high valuations.
- The firm's survey found that 97% of organizations have begun adopting AI agents, yet only 2.32 out of 5 in average confidence in securing those systems.
- Team8 plans to focus on AI infrastructure, orchestration, identity, data, and cybersecurity as central investment themes.
Context
Team8's focus on AI-native enterprise startups reflects the broader trend of AI transformation in various industries. The firm's investment strategy emphasizes the need for well-rounded entrepreneurs who can manage both technological and business aspects.
The growing importance of AI infrastructure and cybersecurity is highlighted by Team8's survey, which indicates a significant gap between AI adoption and security. This gap presents a strong investment opportunity in AI-native companies developing infrastructure that enables secure and rapid AI deployment.
Team8's success in raising significant capital and achieving high valuations for its portfolio companies underscores the firm's expertise in identifying and nurturing promising startups in the AI space.
