Key Takeaways
- • Team8 raised $365 million in new capital, comprising $265 million for its third venture fund and more than $100 million earmarked for follow-on investments in existing portfolio companies, bringing total assets under management to nearly $2 billion.
- • Team8 Capital Fund III, led by managing partners Sarit Firon and Liran Grinberg with partners Ori Barzilay and Hadar Siterman, will focus on Seed and Series A stage investments in cybersecurity, software and AI infrastructure, fintech, and digital health—sectors positioned at the intersection of enterprise software and artificial intelligence.
- • The fund has already deployed capital efficiently, completing nine investments during the fundraising period and achieving an early exit through Palo Alto Networks' acquisition of portfolio company Koi Security for approximately $400 million in February 2026, demonstrating exit velocity before final close.
- • Team8's broader portfolio has generated significant venture capital momentum, with portfolio companies collectively raising approximately $1 billion from external venture investors, including $762 million raised over the past twelve months alone, indicating strong market validation and exit potential across the investment thesis.
- • Notable portfolio companies including Classiq (quantum computing operating system, $200 million+ raised), FundGuard (financial software infrastructure, $100 million round), and Port (agentic AI development platform, $100 million at $800 million valuation) demonstrate the fund's track record backing AI-native infrastructure and application layer companies.
Summary
Israeli venture capital firm Team8 announced a $365 million fundraise for its third institutional fund, positioning the firm as a significant player in the emerging AI-native enterprise software category. The capital raise includes $265 million designated for Team8 Capital Fund III and more than $100 million allocated to follow-on investments, expanding the firm's total assets under management to nearly $2 billion.
Fund III will be led by managing partners Sarit Firon and Liran Grinberg, alongside partners Ori Barzilay and Hadar Siterman. The fund's investment mandate targets early-stage companies—specifically Seed and Series A rounds—operating at the intersection of four core sectors: cybersecurity, software and AI infrastructure, fintech, and digital health. This focus reflects a deliberate bet on enterprise software companies built natively on artificial intelligence capabilities rather than companies retrofitting AI into legacy systems.
The fund has demonstrated early momentum despite still being in fundraising. Team8 completed nine investments while capital formation was underway and achieved a noteworthy first exit before the fund's final close: Palo Alto Networks acquired portfolio company Koi Security for approximately $400 million in February 2026. This exit validates the fund's thesis on cybersecurity-focused AI applications and establishes proof points for limited partners on returns potential.
Team8's existing portfolio reveals the breadth of its AI-native investment approach. Classiq, which develops an operating system for quantum computing infrastructure, has raised more than $200 million to date. FundGuard, a financial software infrastructure company, completed a $100 million funding round. Port, a software development platform designed for the emerging agentic AI era, raised $100 million at an $800 million valuation. Collectively, Team8's portfolio companies have raised approximately $1 billion in external venture capital, with $762 million deployed over the past year alone, signaling sustained investor appetite for the firm's investment thesis and the underlying AI-native enterprise software category.
Fund III will be led by managing partners Sarit Firon and Liran Grinberg, alongside partners Ori Barzilay and Hadar Siterman. The fund's investment mandate targets early-stage companies—specifically Seed and Series A rounds—operating at the intersection of four core sectors: cybersecurity, software and AI infrastructure, fintech, and digital health. This focus reflects a deliberate bet on enterprise software companies built natively on artificial intelligence capabilities rather than companies retrofitting AI into legacy systems.
The fund has demonstrated early momentum despite still being in fundraising. Team8 completed nine investments while capital formation was underway and achieved a noteworthy first exit before the fund's final close: Palo Alto Networks acquired portfolio company Koi Security for approximately $400 million in February 2026. This exit validates the fund's thesis on cybersecurity-focused AI applications and establishes proof points for limited partners on returns potential.
Team8's existing portfolio reveals the breadth of its AI-native investment approach. Classiq, which develops an operating system for quantum computing infrastructure, has raised more than $200 million to date. FundGuard, a financial software infrastructure company, completed a $100 million funding round. Port, a software development platform designed for the emerging agentic AI era, raised $100 million at an $800 million valuation. Collectively, Team8's portfolio companies have raised approximately $1 billion in external venture capital, with $762 million deployed over the past year alone, signaling sustained investor appetite for the firm's investment thesis and the underlying AI-native enterprise software category.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.