Team8 Raises $365 Million for New Venture Capital Fund Focused on AI and Cybersecurity

Team8 announced on Wednesday the successful raising of $365 million, increasing its total assets under management to approximately $2 billion. Of this amount, $265 million was allocated to Team8 Capital's third investment fund, with over $100 million reserved for follow-on investments in prominent portfolio companies. The new fund will be managed by Sarit Piron and Liran Greenberg, alongside partners Uri Barzilai and Hadar Siterman Norris. It plans to invest in seed and Series A stage companies in cybersecurity, software infrastructure, artificial intelligence, fintech, and digital health sectors.

The fund's size marks a moderate growth of about 13% compared to Team8 Capital's second fund, which closed at $235 million in 2024. Earlier in August 2025, Team8 was reported to be raising between $250 million and $300 million. The new fund has already made nine investments and achieved its first exit prior to final closing, with cybersecurity firm Koi Security sold to Palo Alto Networks in a deal valued around $400 million. Team8 did not disclose its investment amount or stake in Koi Security.

Other portfolio companies include Classiq, a quantum computing software developer that has raised over $200 million; FundGuard, a software infrastructure firm for investment management with a recent $100 million funding round; and Port, a software development process platform valued at $800 million after raising $100 million. Team8 currently holds stakes in 65 companies, which collectively raised about $1 billion from other investors, including $762 million in the past year.

Team8 anticipates growing demand for companies providing infrastructure, data, identity, and security layers essential for AI deployment in organizations. The fund will focus on startups developing AI agent tools, development platforms, and secure AI integration systems. Besides traditional investments, Team8 also builds companies with entrepreneurs and supports its portfolio through a community of around 1,000 executives and experts from global firms.

The fundraising was completed amid a challenging environment for new venture capital funds in Israel, despite a recovery in investment volumes. Team8's investors include international entities such as Walmart, Cisco, Moody's, AT&T, SoftBank, and Temasek, though the fund did not specify which participated in this round or the share of new versus existing investors.

Sarit Piron, managing partner at Team8, stated that completing the raise during uncertain times reflects strong international investor confidence. She noted that while AI facilitates faster product development, it also intensifies competition, making sustainable advantages harder to maintain. Co-founder and managing partner Liran Greenberg emphasized that smaller teams can now deliver working products more rapidly, shifting the challenge to identifying significant problems, reaching customers, and building distribution. He highlighted Israel's technological expertise combined with AI-driven changes as a potential catalyst for a new generation of local companies.