Team8 Capital Raises $265 Million to Focus on AI Infrastructure Startups

Team8 Capital, the venture capital arm of Team8 led by Sarit Firon and Liran Greenberg, has completed a $265 million fundraising round for its third investment fund. In addition, it raised $100 million for a follow-on fund to support portfolio companies. With these new funds, Team8 Capital now manages nearly $2 billion in assets. The new fund has already recorded an exit with the sale of cybersecurity company KOI to Palo Alto Networks for approximately $400 million in early 2026. Over the past year, nine investments have been made from the new fund during the capital raise process, which has now officially concluded.

Previous Team8 Capital funds invested in companies such as Classic, which developed an operating system for quantum computing and has raised over $200 million; FundGuard, a software infrastructure provider for the financial sector that recently closed a $100 million round; and Port, which created a software development platform for the Agentic AI era, raising $100 million at an $800 million valuation. Collectively, Team8 portfolio companies have raised about $1 billion from venture capital investors, including $762 million in the past year alone.

Sarit Firon, managing partner, noted that alongside institutional investors, Indian software giant Infosys invested in the new fund for the first time, showing interest in Israeli startups previously backed by Team8. Firon commented on the recent return of investors to Israeli funds following a difficult period during the peak of the war in Israel, emphasizing that innovation and concerns about AI uncertainty are driving investment. She highlighted the importance of entrepreneurs who can simultaneously develop technology, product, and sales rapidly, describing them as "well-rounded" rather than just technologists.

Despite a current trend toward hardware investments like chips and server farms, Firon and Greenberg continue to focus exclusively on software, arguing that software remains foundational and will evolve rather than disappear. The new fund will invest in early-stage startups in cybersecurity, software infrastructure, AI, fintech, and digital health. A recent Team8 survey at its annual CISO Summit found that 97% of organizations are deploying AI agents, with 80% using them in critical environments, yet confidence in securing these systems averaged only 2.32 out of 5. Based on this insight, the fund will prioritize AI-native companies building infrastructure layers to enable organizations to adopt AI quickly and securely.