Team8, the Israel-founded venture capital and company-building group, has closed $365 million in new capital to back AI-native seed and Series A startups. The raise brings the firm's total assets under management to nearly $2 billion across eight funds since it was founded in 2014.
Where the money is going
The new capital breaks down into $265 million for Team8 Capital's third fund and more than $100 million earmarked for follow-on investments in its highest-conviction portfolio companies. Fund III will target seed and Series A rounds across cybersecurity, software infrastructure, fintech and digital health, with a particular focus on companies being built around AI from the ground up. The firm plans to lead and co-lead rounds with $5-15M checks.
An investment thesis built on an enterprise gap
Team8's own CISO Village Summit of 111 security leaders reported that 97% of organizations had begun adopting AI agents and 80% were running them in production — yet average confidence in their ability to secure those agents was just 2.32 out of 5. That gap between adoption and protection is the fund's core thesis.
Building above the model layer
Rather than chasing foundation-model bets, Team8 is targeting the identity, orchestration, data-security and governance layers that will sit around AI agents inside enterprises. That thesis was already validated inside the new fund: Palo Alto Networks' reported acquisition of portfolio company Koi Security produced an exit from Fund III before it even had its final close. Team8's portfolio has previously been acquired by Palo Alto Networks, Cisco and PayPal, among others. Broader context on the AI-security build-out is in our coverage of Mindgard's $30M Series A for AI red teaming, and on adjacent enterprise-AI capital in Skan.ai's $63M Series C.
Team behind the fund
Team8 Capital is led by Managing Partners Sarit Firon and Liran Grinberg, alongside Partners Ori Barzilay and Hadar Siterman Norris. The firm pairs its investments with a 90-plus person company-building operation and a network of hundreds of enterprise executives who provide founders with customer feedback during early product development.
Reporting based on coverage from Tech Startups, Times of Israel, SecurityWeek and Dealroom.