Team8 raises $365M for AI-native startups, nearing $2B in assets
What's the deal? On 11 August 2026, Team8 announced $365 million in new capital: $265 million for Team8 Capital's third fund and more than $100 million for follow-on investments in its highest-conviction portfolio companies. The third fund will back Seed and Series A founders building AI-native companies across cybersecurity, software infrastructure, fintech and digital health, bringing Team8's total assets under management to nearly $2 billion across eight funds since 2014.
The early exit: The fund recorded its first exit before reaching final close. The Information reported that Team8 co-led a $48 million fundraise for Tel Aviv-based Koi late in 2025 from the new $265 million fund; in April 2026, Koi, whose software helps prevent risks from AI agents, was sold to Palo Alto Networks for about $400 million.
Who's behind it? The fund is led by managing partners Sarit FironDealroom has a profile for this one. Try Dealroom → and Liran GrinbergDealroom has a profile for this one. Try Dealroom →, alongside partners Ori Barzilay and Hadar Siterman Norris. Firon said the firm's US and European pension funds, funds of funds and family-office limited partners are increasingly seeking strong opportunities in the Israeli market.
Investment focus: Team8 aims to lead and co-lead rounds with $5 million to $15 million checks, primarily backing Israeli-founded startups in cybersecurity, software infrastructure, fintech and digital health. The firm also provides company-building support, including enterprise connections, market validation, go-to-market, recruiting and AI expertise.
The signal: Team8's fund closes as enterprise adoption of AI agents accelerates faster than organisations' ability to secure them. A survey of 111 security leaders at Team8's CISO Village Summit found that 97% of organisations had begun adopting AI agents and 80% were already running them in production, while confidence in securing AI averaged 2.32 out of 5. The firm is therefore concentrating on the infrastructure and cybersecurity layers that can help enterprises adopt AI with greater confidence, including AI infrastructure, orchestration, identity, data and security.
Market context: The new fund is part of a broader wave of capital targeting Israeli entrepreneurs following landmark acquisitions such as Google's $32 billion buyout of Wiz and ServiceNow's $7.75 billion takeover of Armis. Grinberg said founders need a deep understanding of enterprise context, demand and challenges alongside technology.
Read more: The Information · Team8 press release
Image credit: Team8
