Team8 raises $500M in new funds for building and investing in cyber, data infrastructure, AI, fintech, and digital health startups
10 years since its inception, Team8 has achieved close to $2 billion in exits while new funding brings AUM to well over $1 billion.
Team8, a leading global fund that builds and invests in companies playing a crucial role in the digital transformation of major sectors, today announced the closing of new funds totaling $500 million, bringing its total assets under management (AUM) to well over the 1 billion dollars mark.
While the venture capital industry has remained relatively unchanged for many years, the innovation engines and landscape surrounding it have changed. Since launching in 2014, the Team8 model has innovated and extended the traditional venture capital approach by taking a more aligned and operationally intensive approach to investing. Over the past decade, Team8 has earned strong endorsements from top-tier LPs, corporate investors, and leadership teams at some of the largest companies in the world.
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.
The latest additions – the fifth, sixth, and seventh funds – showcase Team8’s expanding commitment to fostering groundbreaking developments in several high-impact sectors. These funds will fuel the creation and growth of over 30 startups in areas critical to technological advancement and societal progress.
Yuval Shachar, Managing Partner and Chairman at Team8: “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 in building and investing in companies, and the substantial value we consistently deliver to our portfolio companies.
Team8 operates uniquely 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 robust ideation and validation processes that refine and test ideas; a thriving network of engaged 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.
Reflecting on this achievement, Yuval Shachar, Managing Partner and Chairman at Team8 added: “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. 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.”
Of the three funds announced, the first two are part of the Venture-Creation model and the third belongs to the Venture-Capital model:
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Team8’s Venture-Creation Enterprise Fund has raised USD $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. |
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Team8’s Venture-Creation Digital HealthFund has raised USD $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. |
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Team8’s Venture-Capital Fund has raised USD $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, doubling down on Team8’s most successful companies on an ongoing basis.
Source: Business Wire