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Team8 raises $500 million in new funds, taking AUM to over $1 billion

Team8 raises $500 million in new funds, taking AUM to over $1 billion

Ten years since its inception, Team8 has achieved close to $2 billion in exits

Meir Orbach | 16:00, 05.03.24

Israeli fund Team8 announced on Tuesday the closing of new funds totaling $500 million, bringing its total assets under management (AUM) to well over the $1 billions mark.

Since launching in 2014, the Team8 model has aimed to innovate and extend the traditional venture capital approach by taking a more aligned and operationally intensive approach to investing. To date, Team8 has built 20 companies, invested in an additional 21, and achieved eight exits (including the recent cyber exits of Dig and Talon for a total amount of approx. $1B combined). In addition, it has expanded its focus beyond its original scope of cybersecurity to encompass fintech, data infrastructure, AI, and digital health.

Team8 team. Team8 team. Team8 team.

The latest additions - the fifth, sixth, and seventh funds - are set to fund the creation and growth of over 30 startups.

Team8 operates across two distinct models: Venture-Creation and Venture-Capital. This dual approach enables entrepreneurs to access a wide array of support tailored to their needs. Team8 provides ideation and validation processes that refine and test ideas; a network of market-leading companies and individuals known as the ‘Team8 Village' that offers startups a valuable network of global partners; and a platform team of 80+ company builders with deep-domain expertise that delivers extensive operational support. Within this platform, Team8 portfolio companies leverage company builders in areas such as strategic business planning, research, go-to-market strategies, product marketing, HR, talent acquisition, finance, and more.

“In the face of strong market headwinds, including global economic hurdles, downturns in the tech market, and a complex geopolitical climate - our announcement further emphasizes the resilience of the Team8 model,” said Yuval Shachar, Managing Partner and Chairman at Team8. “Amidst the demanding market conditions, we have been making meaningful distributions to our investors, building new companies, scaling existing ones, and raising multiple new funds.

“This milestone is not just about financial growth; it's a validation of our unique methodology in building and investing in companies and the substantial value we consistently deliver to our portfolio companies.”

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Of the three funds announced, the first two are part of the Venture-Creation model and the third belongs to the Venture-Capital model. Team8’s Venture-Creation Enterprise Fund has raised $110 million for its third fund. This fund is primarily dedicated to collaborating with leading entrepreneurs (often serial founders) to jointly build and invest the Seed rounds in 1-2 new startups a year in the fields of cyber, data infrastructure & AI.

Team8’s Venture-Creation Digital Health Fund has raised $70 million for its first fund. This fund will also partner with experienced and often serial entrepreneurs uniquely positioned to revolutionize the digital health ecosystem that is undergoing a dramatic digital transformation. The fund will be used to jointly build and invest the Seed rounds in 1-2 new startups a year.

Team8’s Venture-Capital Fund has raised $235 million for its second fund. This fund is strategically aimed at investing in promising Seed and Series A rounds of startups that operate across and in the intersection of various sectors, including cyber, enterprise infrastructure (data, AI, cloud, dev, devops), fintech, and digital health.

In addition, Team8 also raised approximately $85 million more in follow-on funds.

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