Key Takeaways
- • Team8 raises $365 million in new capital, comprising $265 million for its third institutional fund and over $100 million for follow-on investments in existing portfolio companies, bringing total assets under management to nearly $2 billion.
- • The third fund, led by managing partners Sarit Firon and Liran Grinberg, will focus on Seed and Series A stage investments in cybersecurity, software infrastructure, AI infrastructure, fintech, and digital health sectors.
- • Team8's portfolio has demonstrated strong exit momentum, with Palo Alto Networks acquiring portfolio company Koi Security for approximately $400 million in February 2026, and the fund recording this exit before reaching its final close.
- • Notable portfolio companies have secured substantial capital: Classiq (quantum computing OS) raised over $200 million; FundGuard (financial software infrastructure) completed a $100 million round; and Port (agentic AI platform) raised $100 million at an $800 million valuation.
- • Team8's portfolio companies have collectively raised approximately $1 billion from venture investors, with roughly $762 million raised over the past year alone, demonstrating strong investor interest in the fund's deal sourcing and portfolio construction.
Summary
Israeli venture capital firm Team8 has closed a $365 million fundraising round for its third institutional capital fund, along with securing over $100 million in follow-on capital for portfolio company investments. The combined raise brings Team8's total assets under management to nearly $2 billion, positioning the firm as a significant player in Israel's venture ecosystem and expanding its capacity to back AI-native enterprise companies.
The third fund, designated Team8 Capital III, is led by managing partners Sarit Firon and Liran Grinberg, with partners Ori Barzilay and Hadar Siterman. The fund's investment strategy focuses on early-stage opportunities at the Seed and Series A stages across five primary sectors: cybersecurity, software and AI infrastructure, fintech, and digital health. The fund has already deployed capital into nine companies over the past year while fundraising continued, demonstrating aggressive deal activity even during the fundraising process.
Team8's portfolio track record supports investor confidence in its model. Most notably, portfolio company Koi Security was acquired by Palo Alto Networks for approximately $400 million in February 2026, achieving a significant exit before the third fund reached its final close. Other portfolio holdings have secured substantial follow-on funding: Classiq, which develops an operating system for quantum computing, has raised over $200 million; FundGuard, a financial software infrastructure provider, completed a $100 million funding round; and Port, a software development platform designed for the agentic AI era, raised $100 million at an $800 million valuation. These data points reflect strong venture market validation of Team8's thesis around AI-native enterprise infrastructure.
Collectively, Team8's portfolio companies have raised approximately $1 billion from venture capital investors overall, with approximately $762 million of that capital deployed over the past twelve months. This concentration of recent capital raising suggests continued investor appetite for the specific problem domains and market opportunities Team8 is targeting in its portfolio construction. The fund's ability to generate a meaningful exit before final close, combined with its portfolio companies' success in raising follow-on capital, provides strong evidence of deal quality and founder execution in the current market environment.
The third fund, designated Team8 Capital III, is led by managing partners Sarit Firon and Liran Grinberg, with partners Ori Barzilay and Hadar Siterman. The fund's investment strategy focuses on early-stage opportunities at the Seed and Series A stages across five primary sectors: cybersecurity, software and AI infrastructure, fintech, and digital health. The fund has already deployed capital into nine companies over the past year while fundraising continued, demonstrating aggressive deal activity even during the fundraising process.
Team8's portfolio track record supports investor confidence in its model. Most notably, portfolio company Koi Security was acquired by Palo Alto Networks for approximately $400 million in February 2026, achieving a significant exit before the third fund reached its final close. Other portfolio holdings have secured substantial follow-on funding: Classiq, which develops an operating system for quantum computing, has raised over $200 million; FundGuard, a financial software infrastructure provider, completed a $100 million funding round; and Port, a software development platform designed for the agentic AI era, raised $100 million at an $800 million valuation. These data points reflect strong venture market validation of Team8's thesis around AI-native enterprise infrastructure.
Collectively, Team8's portfolio companies have raised approximately $1 billion from venture capital investors overall, with approximately $762 million of that capital deployed over the past twelve months. This concentration of recent capital raising suggests continued investor appetite for the specific problem domains and market opportunities Team8 is targeting in its portfolio construction. The fund's ability to generate a meaningful exit before final close, combined with its portfolio companies' success in raising follow-on capital, provides strong evidence of deal quality and founder execution in the current market environment.
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