Cybersecurity investment landscape, Team8, a distinguished firm with bases in Tel Aviv and New York, has raised an impressive $500 million in new funds, marking a substantial milestone by surpassing $1 billion in total assets under management (AUM). Team8 uniquely divides its operations into venture creation and venture capital, setting itself apart by actively identifying commercial challenges, formulating innovative solutions, and either building or investing in companies to tackle these issues. This approach has resulted in the creation of 20 companies, investments in 21 others, and eight successful exits, including high-profile acquisitions by Palo Alto in 2023.
While Team8 has traditionally focused on cybersecurity, its recent expansion into data, AI, fintech, and digital health showcases a commitment to diversifying its portfolio. The new funds will be allocated across three specific funds: Venture-Creation Enterprise ($110 million), Venture-Creation Digital Health ($70 million), and Venture Capital ($235 million). An additional $85 million is earmarked for reinforcing Team8’s most successful companies continuously. Team8’s unique venture creation model involves proactively identifying problems, proposing solutions, and building or investing in companies, challenging the conventional approach of waiting for existing companies to seek funding.
Despite its expansion into new sectors, Team8’s core emphasis remains on cybersecurity. The company’s model benefits from Israel’s unique society, where military service requirements channel bright minds into cyber training. Team8 leverages this talent pool, comprised of military intelligence agency alumni, to disrupt the cybersecurity landscape. The company’s philosophy revolves around growing companies organically, nurturing them towards profitable exits, and embracing an evergreen pool of talent ready to disrupt cybersecurity categories with their entrepreneurial attitudes.
