Team8 Capital III Closes $265.6M: AI-Native Cyber and Infrastructure at Seed and Series A

Team8 Capital, the Israeli-American venture creation and investment firm, filed its third fund at $265.6 million on August 18. The firm announced a broader $365 million raise when accounting for over $100 million reserved for follow-on investment in its highest-conviction portfolio companies, bringing Team8 to approximately $2 billion in assets under management across eight funds since 2014.

What Team8 Invests In

Fund III targets seed and Series A startups being built with AI as a foundational layer, across four categories: cybersecurity, software infrastructure, fintech and digital health. Managing Partners Sarit Firon and Liran Grinberg have been deploying from the fund for roughly a year ahead of the close, with nine investments already made. The pace of deployment reflects Team8's company-building model, which combines investment with operational support in areas where it maintains deep expertise. The fund is not a passive capital provider: Team8 co-develops companies from thesis stage and takes early stakes before external fundraising begins.

An Exit Before the Close

The fund recorded an exit before the raise even closed. Palo Alto Networks reportedly acquired Koi Security, a Team8 portfolio company, for approximately $400 million in February 2026, validating the firm's thesis that purpose-built AI security tools will command premium exit multiples as enterprise AI adoption accelerates. Nine investments made and one exit realised before LP capital was even fully committed is an unusual track record at this stage of a fund's life.

What This Means for Founders

For founders in cybersecurity and enterprise AI, Team8 represents a rare source of capital that brings both cheque and industry network. The fund's focus on companies where security and governance infrastructure is still catching up to AI deployment speeds means it is actively looking at founders building in agentic frameworks, identity management, and AI operations. Founders in these categories can explore active investors on the AngelLinx investor directory.

Find investors actively backing AI and cybersecurity startups @ angellinx.ai/investors.

AngelLinx Intelligence | angellinx.ai