Team8 Raises $365 Million for Israeli AI Startups

The Times of Israel reported that the financing is backed by Walmart, Cisco, Moody's, AT&T, SoftBank, Temasek, and Infosys. Team8 managing partner Sarit Firon told the publication that AI is changing the economics of company formation, saying, "a remarkably small team with access to frontier models can build in weeks what once took years."

The Jerusalem Post reported that Team8 framed the fund around AI-native technology as enterprises reassess products, workflows, infrastructure, and security models amid wider generative and agentic AI adoption. The reported investment themes emphasize enterprise software and infrastructure for AI adoption.

Infrastructure for governing agentic workloads is increasingly a distinct technical category. Comparable enterprise deployments commonly require identity and access controls for agents, monitoring of tool calls and data flows, evaluation pipelines, and audit trails that link model behavior to business actions. Cybersecurity-focused venture activity in this area reflects the expanding attack surface created when models are connected to internal systems and external tools.

The fund has already recorded a portfolio exit before its final close. In February, Palo Alto Networks reported an agreement to acquire Israeli cybersecurity startup Koi Security for approximately $400 million, according to the Jerusalem Post. The Times of Israel likewise identified Koi Security as an investment from the new fund.

The reported allocation between initial checks and follow-on capital matters because early-stage AI software companies can face significant costs after their first deployment, including inference, observability, security validation, and enterprise integration. Across the sector, funds that reserve capital for later rounds can support portfolio companies through those scaling stages.