Israeli venture firm Team8 raises $365 million for AI-native startups

Israeli venture capital firm Team8 announced it has raised $365 million to invest in artificial intelligence (AI) native companies. The new capital comprises $265 million for Team8 Capital's third fund and over $100 million earmarked for follow-on investments in its existing portfolio.

The fund, led by managing partners Sarit Firon and Liran Grinberg, will prioritize Seed and Series A companies developing AI-native technologies across cybersecurity, software infrastructure, fintech, and digital health. This latest fundraising brings Team8's total assets under management to nearly $2 billion across eight funds since its founding in 2014.

Team8 targets AI-native companies as enterprise adoption accelerates. The fund has already seen an exit, with Palo Alto Networks agreeing to acquire Israeli cybersecurity startup Koi Security for approximately $400 million in February. Team8 stated the new fund arrives at a critical juncture for enterprises, as the rapid advancement of generative and agentic AI compels companies to re-evaluate their products, workflows, infrastructure, and security models.

"AI is fundamentally rewriting the economics of company building," said Firon. "Developing breakthrough technology has never been easier; building a company that endures has never been harder."

The fundraising occurs as Israeli cybersecurity and defense-tech firms continue to attract substantial interest from global investors and strategic buyers. This interest is particularly strong in areas where the swift adoption of AI creates new security vulnerabilities and infrastructure demands. Companies are increasingly deploying AI agents for autonomous tasks, often before establishing adequate visibility, governance, or security controls. A survey presented at Team8's CISO Village Summit revealed that 97% of 111 surveyed security leaders reported their organizations had begun adopting AI agents, with 80% already running them in production. However, these leaders rated their confidence in securing AI at just 2.32 out of five.

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AI is fundamentally rewriting the economics of company building. Developing breakthrough technology has never been easier; building a company that endures has never been harder.