Team8 Raises $365 Million for New Fund and Scores Early $400 Million Exit

Team8 announced a $365 million fundraising round, including $265 million for its third investment fund and over $100 million for follow-on investments in its portfolio companies. This marks the eighth fund raised by Team8 since its inception, bringing its total assets under management to approximately $2 billion. The new fund, led by managing partners Sarit Piron and Liran Greenberg alongside partners Uri Barzilai and Hadar Siterman-Norris, will invest in Seed and Series A startups focused on cybersecurity, software infrastructure, AI, fintech, and digital health.

The fund emphasizes AI-native companies developing infrastructure for enterprise AI adoption, including Agentic AI, development platforms, identity, data, and security. Even before the fund's final closing, Team8 recorded its first exit: Koi Security, one of the initial nine investments, was acquired by Palo Alto Networks for an estimated $400 million. Team8 highlighted this as an unusual venture capital event, with investors receiving returns just months after the fund's launch.

According to a Team8 survey at its annual CISO Summit, 97% of organizations are deploying AI agents, with 80% using them in critical environments, yet confidence in securing these systems averages only 2.32 out of 5. Greenberg stated that Israeli cybersecurity is globally recognized as a key innovation hub, not just a talent source, but noted that investors remain selective, seeking exceptional teams, real problems, customer access, technological advantages, and proven business value.

Piron noted that while investment amounts in cybersecurity startups are growing, they vary greatly depending on the company's stage and traction. The new fund targets early-stage companies where new categories can still be defined, helping them scale to later rounds and global investors. Team8's portfolio includes 65 companies, with 33 invested in at Seed, A, and B rounds, collectively raising about $1 billion from global venture capitalists, including $762 million in the past year.

Notable portfolio companies include Classiq, a quantum computing OS developer with over $200 million raised; Fundguard, a fintech infrastructure company with a $100 million round; and Port, an Agentic AI software platform valued at $800 million after a $100 million round. Team8 operates a hybrid model combining company building and startup investing, supported by a network of 1,000 experts and Fortune 500 executives through Team8 Village, aiding early-stage companies in market entry, strategic partnerships, and global growth. Backers include Walmart, Cisco, Moody’s, AT&T, SoftBank, and Temasek.

Greenberg emphasized AI's impact on accelerating product development but cautioned that building scalable, reliable companies still requires time for security, integration, regulation, trust, and ROI validation. Piron also discussed the evolving high-tech labor market, noting shifts in workforce needs and growing demand for AI, data, cybersecurity, infrastructure skills, and new roles like Go-to-Market Engineers. She expects continued significant investments in 2026, particularly in AI, cybersecurity, data, and infrastructure, with a stronger focus on efficiency, performance, and delivering real customer value.