Team8 Raises $365 Million for New Fund and Secures Early Exit in Cybersecurity

Team8 announced a $365 million fundraising round, comprising $265 million for its third investment fund, Team8 Capital, and over $100 million for follow-on investments in its portfolio companies. This marks the eighth fund Team8 has raised 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 to facilitate AI adoption in organizations, 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 its initial nine investments, was acquired by Palo Alto Networks for an estimated $400 million. Team8 highlighted this as an unusual venture capital event where investors received 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, though confidence in securing these systems averages only 2.32 out of 5. Greenberg noted that Israeli cybersecurity is globally recognized as a key innovation hub, not only for talent but also for building strategically important companies capable of rapid global growth. However, he emphasized that investors remain selective, seeking exceptional teams, real problems, customer access, technological advantages, and proven business value.

Piron explained that while investment amounts in cybersecurity startups are increasing, they vary greatly depending on the company's stage and traction. The new fund targets early stages where new categories can still be identified and companies built before larger funding rounds. Team8's portfolio includes 65 companies, with 33 investments 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 operating system developer with over $200 million raised; Fundguard, a fintech infrastructure company that completed a $100 million round; and Port, a software development platform for Agentic AI, 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 executives from Fortune 500 companies through Team8 Village, aiding early-stage companies in market entry and global growth.

Supported by Walmart, Cisco, Moody’s, AT&T, SoftBank, and Temasek, Team8 sees AI accelerating product development but stresses that building scalable, reliable companies still requires time for security, integration, regulation, trust, and ROI proof. Piron also addressed the evolving high-tech labor market, noting companies reassess workforce needs and AI's role in task automation, creating demand for new skills and roles, especially in AI, data, cybersecurity, infrastructure, and go-to-market engineering. She anticipates continued significant investments in 2026, particularly in AI, cybersecurity, data, infrastructure, and efficiency improvements.