Listen to this Post
Introduction
In a year marked by geopolitical turbulence and a slowdown in venture capital fundraising, one Israeli firm is bucking the trend. Team8 Capital, the investment arm of the Team8 Group, is in the advanced stages of raising its third fund—targeting between \$250 million and \$300 million. This comes less than a year after it successfully closed its second fund at \$235 million in March 2024. The rapid turnaround, especially in a challenging market, underscores both the resilience of Israel’s tech sector and the confidence Team8 commands among global investors.
the Original
Team8 Capital, the venture capital branch of the Team8 Group, is nearing the close of a new fund estimated between \$250 million and \$300 million. This will be the firm’s second fundraise since the October 7, 2023 war in Israel and its third since inception. The previous fund, raised in March 2024, brought in \$235 million.
The firm’s fundraising momentum has been driven by its leadership team—partners Sarit Firon, Liran Grinberg, and Hadar Siterman Norris—who have been actively engaging with both domestic and international family offices and wealth managers.
Team8 Group, founded in 2014 by Nadav Zafrir (now CEO of Check Point), has a unique model: it both builds startups from scratch and invests in existing ventures, focusing on cyber, data, fintech, and digital health. In 2019, Zafrir partnered with Firon to launch Team8 Capital, which has since raised three funds. The first is fully invested, while the second is actively funding companies. The third is expected to close by late 2025.
The firm’s portfolio boasts notable exits, such as Dig Security and Talon Cyber Security—sold to Palo Alto Networks for a combined \$1 billion shortly after the October 7 attacks. In 2023, Planck was acquired by Applied Systems for \$300 million. Other standout investments include Classiq (quantum computing, \$110 million raised) and Ox Security (cybersecurity, \$60 million raised).
The fundraising environment in Israel has been difficult, with 2024 marking the lowest VC fundraising total in a decade. Only five funds raised over \$100 million, compared to nine in 2023, and very few exceeded the \$200 million mark. Despite this, international investors continue to recognize Israel as a major tech hub—Sequoia and Greylock even opened local offices this year.
Team8 Capital has not commented publicly on the new raise, but its actions suggest strong confidence in its strategy and resilience against global and political headwinds.
What Undercode Say:
Team8 Capital’s current fundraising push is significant for several reasons:
First, it’s an aggressive move in an environment where most venture capital firms are holding back. The Israeli VC scene has been squeezed by the ongoing geopolitical instability, investor caution, and global economic uncertainty. Yet, Team8’s approach suggests that quality deal flow and proven track records can overcome these hurdles.
Second, the speed of this follow-up fundraise—just months after the last one—signals that investors believe in Team8’s deployment strategy. The fact that its first fund is fully invested and its second already has multiple active bets indicates disciplined capital management and a knack for finding promising ventures early.
Third, Team8’s dual model—incubating startups internally while also investing externally—creates a diversified pipeline. It doesn’t rely solely on market scouting; it actively shapes the companies it funds. This not only gives it more control over innovation but also reduces the risk of market timing issues.
Additionally, the firm’s portfolio performance is compelling. The billion-dollar double exit to Palo Alto Networks was not just a lucky strike—it reflects deep expertise in cybersecurity, arguably Israel’s strongest global niche. Combined with strong plays in quantum computing and AI-driven cyber defense, Team8 is positioning itself for the next wave of tech disruption.
However, challenges remain. Raising \$300 million in the current climate requires more than a strong track record—it demands deep trust from LPs. International perceptions of Israel’s stability will weigh heavily on institutional decisions, especially for risk-averse backers like university endowments, which are already facing funding shortfalls.
That said, Israel’s tech sector has repeatedly shown resilience during crises. Many international investors understand that geopolitical risk does not erase the market’s talent density or innovation capacity. In fact, the opening of local offices by major funds like Sequoia and Greylock reinforces the long-term view that Israeli tech is worth the bet.
If Team8 closes at the top of its target range, it will become one of the largest Israeli VC raises of 2025, potentially setting a positive tone for the industry. It may even encourage other funds to re-enter the market sooner rather than later.
In short, Team8 Capital is not just raising money—it’s making a statement that innovation doesn’t pause for conflict. The firm is leveraging its reputation, portfolio wins, and dual-model strategy to attract capital in one of the toughest fundraising environments in a decade. This is more than business as usual—it’s a show of confidence in Israel’s role as the world’s second-largest tech innovation hub.
🔍 Fact Checker Results
✅ Team8 Capital did raise \$235M in March 2024 for its second fund.
✅ Exits to Palo Alto Networks totaled around \$1B for Dig Security and Talon Cyber Security.
✅ 2024 marked the lowest Israeli VC fundraising total in a decade.
📊 Prediction
If Team8 successfully closes its third fund at or above \$300 million, it could spark a mini-revival in Israeli VC fundraising in late 2025. This momentum may inspire other funds to accelerate their timelines, particularly in cybersecurity, AI infrastructure, and quantum computing—sectors where Israel maintains a competitive edge.
Do you want me to also prepare a shorter, news-style headline version for this article so it works better for fast-paced online readers?
🕵️📝✔️Let’s dive deep and fact‑check.
References:
Reported By: calcalistechcom_7b8ae7ea1a1219af882360f9
Extra Source Hub:
https://www.discord.com
Wikipedia
OpenAi & Undercode AI
Image Source:
Unsplash
Undercode AI DI v2
🔐JOIN OUR CYBER WORLD [ CVE News • HackMonitor • UndercodeNews ]
📢 Follow UndercodeNews & Stay Tuned:
𝕏 formerly Twitter 🐦 | @ Threads | 🔗 Linkedin | 🦋BlueSky | 🐘Mastodon
