Israeli venture firm Team8 raises $365m. to invest in AI-native start-ups

Israeli venture capital firm Team8 has secured $365 million in new funding to support the growth of artificial intelligence (AI)-native startups. This injection of capital includes $265 million allocated for Team8 Capital’s third fund and an additional $100 million designated for follow-on investments in existing portfolio companies. The move positions Team8 as a key player in the rapidly evolving landscape of AI-driven innovation, focusing on early-stage ventures that address critical gaps in enterprise security, infrastructure, and workflow automation. The new capital increases Team8’s total assets under management to nearly $2 billion, spread across eight funds launched since the firm’s inception in 2014. The funding round attracted participation from prominent global investors such as Walmart, Cisco, Moody’s, AT&T, SoftBank, Temasek, and Infosys. These backers reflect growing international interest in Israeli tech ecosystems, particularly in sectors where AI is reshaping traditional business operations and security paradigms. Team8’s third fund aims to invest in 16 Israeli-founded startups focused on cybersecurity, software infrastructure, fintech, and digital health. The firm has already demonstrated success through exits such as the acquisition of Koi Security by Palo Alto Networks for approximately $400 million. Other notable exits include Talon Cyber Security and Dig Security, both sold to Palo Alto Networks for a combined value of around $1 billion. Managing partner Sarit Firon emphasized that the current era presents unique challenges and opportunities for entrepreneurs. She noted that while developing cutting-edge technology has become more accessible due to advancements in AI, sustaining a successful enterprise requires addressing persistent issues that transcend technological shifts. “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,” Firon stated. The investment strategy underscores Team8’s commitment to supporting startups that provide essential infrastructure for managing AI agents within corporate environments. As AI systems grow more autonomous, enterprises face increasing pressure to adapt their security protocols and operational frameworks. According to a recent survey conducted at Team8’s CISO Village Summit, 97 percent of participating security leaders confirmed their organizations had initiated the deployment of AI agents, with 80 percent operating these systems in production settings. However, confidence levels regarding securing these AI implementations remain low, averaging just 2.32 out of five. Liran Grinberg, another managing partner, highlighted the urgency of addressing these emerging risks. He pointed out that the integration of AI into workflows is occurring at a pace that often outstrips the capacity of organizations to implement appropriate safeguards. “As AI accelerates change and creates real uncertainty across every enterprise, the biggest opportunities sit in the infrastructure and cybersecurity layers that let enterprises adopt this technology with confidence,” Grinberg remarked. Team8’s approach involves not only financial backing but also comprehensive support for portfolio companies. Founders gain access to resources such as connections with major corporations, market validation processes, and assistance with company formation, recruitment, and marketing strategies. This holistic support system is designed to enhance the chances of success for startups navigating the complex terrain of AI integration. With the new funding, Team8 is poised to further solidify its role as a catalyst for innovation in the AI space. The firm continues to leverage its network of industry experts, including former military personnel and seasoned technologists, to guide startups toward sustainable growth. As the demand for robust AI infrastructure solutions rises, Team8’s expanded investment horizon promises to fuel the next wave of technological advancement in Israel and beyond.