Israeli venture capital firm, Team8, has successfully raised $500 million for investment in various sectors including cyber, data infrastructure, fintech, digital health, and artificial intelligence (AI) startups. With this latest influx of funds, Team8’s total assets under management now exceed $1 billion.
Over the past decade, Team8 has played a significant role in the startup ecosystem, having created 20 companies and invested in 21 others. Typically, the firm invests between $5-10 million in each startup, leading to eight successful exits thus far, Reuters news report said.
Yuval Shachar, Managing Partner at Team8, expressed excitement about the new capital, stating, “This (new) capital will allow us to build and invest in another 30 companies or so.” He emphasized the attractiveness of Team8’s investment model, particularly for second and third-time entrepreneurs.
Although rooted in the Israeli military’s 8200 intelligence unit, Team8 has diversified its focus to include data infrastructure, financial technology, AI, and digital health sectors.
The newly raised funds will be allocated across three new funds, with $235 million designated for the second venture capital fund, $110 million for the third venture creation enterprise fund, which sees Team8 building two companies annually, and $70 million for the newly established digital health fund.
Shachar revealed that during the fundraising process, Team8 has already made investments in two cyber firms, two digital health startups, and several others from its venture capital fund, demonstrating a proactive approach in maintaining momentum.
This significant fundraising effort comes amidst ongoing global uncertainties and challenges. However, Team8 remains optimistic about the future of the Israeli tech ecosystem, citing its strength in emerging AI technologies.
