Team8 Raises $365M to Back Enterprise Startups

Israel-based venture firm Team8 announced this week it raised $365 million. The firm allocated $265 million to Team8 Capital’s third fund and set aside $100 million for follow-on investments, bringing its assets under management to nearly $2 billion since its 2014 founding.

The new capital will finance early-stage enterprise technology companies and provide growth capital to existing portfolio companies that show strong market traction.

Team8 follows a venture-creation model, co-founding and supporting startups in cybersecurity, artificial intelligence, fintech and digital health. The firm combines strategic capital with operational support, including recruiting, go-to-market resources and dedicated AI teams.

Team8 has recorded exits in cybersecurity: Talon, Dig and Koi were acquired by Palo Alto Networks.

Recent investments this year include Frame Security, Act Security, Mate Security, Jazz, Fig Security, Astelia and Lema AI. The $100 million follow-on pool is intended to accelerate growth for the most promising companies in its portfolio.

Sarit Firon, Managing Partner at Team8, emphasized the firm’s focus on AI-driven enterprise solutions: ‘As AI capabilities continue to evolve at a pace none of us has seen before, competitive advantage won’t come from the model underneath a product – it will come from solving fundamental enterprise problems that stay relevant across technology cycles.’

Team8 said the new fund will support its Village communities, networks of founders, customers and industry partners, and expand its recruiting, go-to-market and AI teams to help portfolio companies scale. The firm did not provide a timetable for deploying the new capital.