Connect with us

Hi, what are you looking for?

SecurityWeekSecurityWeek

Cybersecurity Funding

Investment Firm Team8 Raises Additional $500 Million

Investment firm Team8 has raised $500 million in new funds, bringing its total assets under management to over $1 billion.

Team8 raises additional capital for investment

Investment firm Team8 has raised $500 million in new funds, bringing its total assets under management (AUM) to over $1 billion.

The Tel Aviv and New York-based company divides its activities into two separate areas: venture creation and venture capital. The first helps entrepreneurs get new ideas off the ground, while the second helps them grow. Using this model, Team8 has built 20 companies, invested in a further 21 companies, and achieved eight exits (including Dig and Talon, both acquired by Palo Alto for a total amount in excess of $1 billion during 2023).

Traditionally, it has focused on cybersecurity (which it still does) but has recently further expanded into data and AI, and fintech and digital health.

The new money will be divided between three separate funds: Venture-Creation Enterprise ($110 million); Venture-Creation Digital Health ($70 million); and Venture Capital ($235 million). The final $85 million, says Team8, is for “doubling down on Team8’s most successful companies on an ongoing basis.”

Team8’s USP is its venture creation model. It actively identifies commercial problems, theorizes on potential solutions, and builds and invests in companies that tackle these problems. In this way, it builds solutions for investment rather than simply waiting for an existing company to ask for funding.

This model of define, refine and build is supported by the Team8 Village, a term used to designate the firm’s global network of partners and its own team of more than 80 ‘company builders’. “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,” says the firm.

Despite the company’s expansion into new vertical sectors, its focus remains on cybersecurity – and it is noticeable that the new sectors all require deep security knowledge (data and AI are cornerstones of security, while fintech and digital health are, and will likely remain, among the most attacked technologies).

Team8’s historical security strengths and focus are built on the nature of Israel’s society. While all advanced nations have their own intelligence agencies, few come close to Israel’s quantity of new companies with new ideas generated by intelligence agency alumni. The reason is that most agencies recruit and retain their agents. Israel is unique in having a military service requirement from which the brightest minds are automatically siphoned into and trained in specific strengths – including cyber. That military service comes to an end, and highly trained cyber experts are released back into civilian life.

Advertisement. Scroll to continue reading.

But it is not just a question of cyber knowledge – the nature of Israel’s military cyber intelligence agencies is like a school for entrepreneurs. Liran Grinberg, co-founder and managing partner at Team8, explains this in more detail. “8200 is a special organization with an entrepreneurial culture. Although it’s a military organization which is supposed to be very hard kill [a military term that effectively means ‘destroy the threat, no messing’] it actually encourages an entrepreneurial approach with bold new ideas — and it is failure tolerant. Senior people within the unit may suggest a goal when they don’t know if it is possible. The team attempts to achieve this and often fails — but that’s OK, they tried, and are encouraged to try even if it is impossible.”

Every year, hundreds of these uniquely trained young men and women, trained on cutting edge technology and encouraged to attempt the possibly impossible, are retired from their military service. “You get that magic of an incredible pool of talent ready to disrupt categories in cybersecurity through the creation of startup companies using their own built-in entrepreneurial attitudes.” And the pool refreshes itself every year.

It is maximizing these opportunities that have led to Team8’s unique funding model: understand the current cybersecurity problems, understand what sort of solutions could be developed, match those conditions to this evergreen tool of technical expertise and adventurous attitudes – and then provide the initial funds and expert advice necessary to grow a new company. Team8’s basic philosophy is to grow rather than just feed its portfolio; and then to nurture the grown company toward ultimate profitable exit.

Related: Gem Security Gets $11M Seed Investment for Cloud Incident Response Platform

Related: Akeyless Raises $65 Million for Secrets Management Tech

Related: Cloud Data Security Firm Dig Emerges From Stealth With $11M in Funding

Related: Online Infrastructure Security Firm Cyberpion Emerges From Stealth (now known as Ionix)

Written By

Kevin Townsend is a Senior Contributor at SecurityWeek. He has been writing about high tech issues since before the birth of Microsoft. For the last 15 years he has specialized in information security; and has had many thousands of articles published in dozens of different magazines – from The Times and the Financial Times to current and long-gone computer magazines.

Trending

Daily Briefing Newsletter

Subscribe to the SecurityWeek Email Briefing to stay informed on the latest threats, trends, and technology, along with insightful columns from industry experts.

Join the session as we discuss the challenges and best practices for cybersecurity leaders managing cloud identities.

Register

SecurityWeek’s Ransomware Resilience and Recovery Summit helps businesses to plan, prepare, and recover from a ransomware incident.

Register

People on the Move

Cody Barrow has been appointed the new CEO of threat intelligence company EclecticIQ.

Shay Mowlem has been named CMO of runtime and application security company Contrast Security.

Attack detection firm Vectra AI has appointed Jeff Reed to the newly created role of Chief Product Officer.

More People On The Move

Expert Insights

Related Content

Application Security

Cycode, a startup that provides solutions for protecting software source code, emerged from stealth mode on Tuesday with $4.6 million in seed funding.

Cybersecurity Funding

SecurityWeek investigates how political/economic conditions will affect venture capital funding for cybersecurity firms during 2023.

Cyber Insurance

Cyberinsurance and protection firm Boxx Insurance raises $14.4 million in a Series B funding round led by Zurich Insurance.

Cybersecurity Funding

2022 Cybersecurity Year in Review: Top news headlines and trends that impacted the security ecosystem

Cybersecurity Funding

Network security provider Corsa Security last week announced that it has raised $10 million from Roadmap Capital. To date, the company has raised $50...

Funding/M&A

Thirty-five cybersecurity-related M&A deals were announced in February 2023

Funding/M&A

Forty-one cybersecurity-related M&A deals were announced in March 2023.

Funding/M&A

Forty cybersecurity-related M&A deals were announced in January 2023.