Israel's Team8 launches $104m venture capital fund

Sarit Firon / Photo: Yonatan Bloom
Sarit Firon / Photo: Yonatan Bloom

Team8 is extending its cybersecurity company building foundry model to include venture capital investment led by Sarit Firon.

Israeli company-building venture group Team8 today announced the launch of Team8 Capital, a new venture capital fund. Initially focusing solely on building cybersecurity companies, Team8 now says it is focusing on enterprise technology startups with a focus on data, AI and cybersecurity. Team8 did not disclose any financial details about the fund but according to forms submitted to the SEC it has already received commitments for $104 million. The fund is designed to raise $100-150 million.  

Team8 Capital says it will invest at Seed, A and B rounds of funding, expanding on Team8’s Foundry model that builds new companies from scratch. One of Israel’s leading investors, Sarit Firon joins Team8 as managing partner of Team8 Capital and she will be joined by managing partner and Team8 cofounder Liran Grinberg.

Backed by strategic investors including Walmart, Microsoft, Cisco, Barclays and Moody’s, Team8 has pioneered a signature Foundry model of creating new technology companies by identifying big problems that companies face, ideating novel solutions to solve them and supporting startup progression to success.

Team8 employs an in-house team of 40 company-builders across its New York and Tel Aviv headquarters, including domain experts, researchers, idea initiators, marketers, business developers and talent recruiters. The group has also formed the ‘Team8 Village’, a community of hundreds of C-level executives from leading global corporates who undertake an active role in Team8’s company-building process, from identifying enterprise challenges to developing the solution thesis and contributing as design and business partners.

Team8 Capital leverages and extends these resources for developing its investment thesis and conducting due diligence of prospect investments. Specifically, the in-house technology research group supports technical due diligence and the in-house go-to-market group, alongside the Team8 Village, supports the market validation - providing critical insights for investment decisions. Team8 Capital’s portfolio companies will benefit from hundreds of business opportunities created annually, alongside unparalleled access to recruit world-class R&D talent, alumni of Israel’s elite technology and intelligence units such as 8200, leveraging the background of Team8’s founders, including Nadav Zafrir, former IDF 8200 unit commander.

Actively investing during the Covid-19 crisis, Team8 Capital is funding technologies that have become even more critical to enterprises as they navigate through the crisis and beyond, whereby digital connectivity and trust have become paramount to ensure business continuity.

Sarit Firon, one of Israel’s leading investors, is joining Team8 to lead Team8 Capital. Sarit brings over 25 years of operational and investment experience in C-level and board member roles across Silicon Valley, New York and Tel Aviv’s high tech hubs, having participated in exits and IPOs valued at more than $4 billion.

Firon said, "More than ever before, connectivity and trust in our digital infrastructure are top-of-mind for enterprises as they steer through these unprecedented times. Leveraging our ability to provide entrepreneurs with deep domain expertise, wealth of company-building experience and real value-add capabilities in go-to-market and talent hiring, Team8 Capital is uniquely positioned to partner with the best founders and help scale the next winners to build our all-digital futures."

Published by Globes, Israel business news - en.globes.co.il - on June 3, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Sarit Firon / Photo: Yonatan Bloom
Sarit Firon / Photo: Yonatan Bloom
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