Team8 Capital is in the advanced stages of raising US$250 million to US$300 million for its third fund.

The venture arm of Israel-based Team8 Group raised US$235 million for its second fund in March 2024.

The fundraising is progressing after meetings with family offices in Israel and overseas, and the new fund is expected to close by the end of 2025.

Team8 Group was founded by Nadav Zafrir in 2014. He partnered with Sarit Firon in 2019 to launch Team8 Capital, which invests in cyber, data, fintech, and digital health.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Track record enables fundraising success even in challenging markets

Team8 Capital’s ability to raise $250-300 million demonstrates how strong performance can overcome broader market difficulties.

Only five Israeli VC funds raised more than $100 million in 2024, with none exceeding $200 million except Red Dot ($320 million) and Greenfield ($400 million), according to the original reporting.

Team8’s fundraising success stems from concrete exits that generated substantial returns for investors, including the combined $1 billion sale of Dig Security and Talon Cyber Security to Palo Alto Networks shortly after October 7, 2023.

The firm’s March 2024 fundraising already brought total assets under management to over $1 billion across multiple funds 1.

This suggests that during market downturns, institutional investors become more selective and gravitate toward funds with proven execution capabilities rather than emerging managers without established track records.

2️⃣ Israeli tech investment activity remained resilient despite fundraising constraints

The contrast between fundraising difficulties and actual investment volumes reveals the underlying strength of Israel’s tech ecosystem.

While Israeli VC fundraising hit a decade low with only $922 million available for new investments in 2024, Israeli tech companies still raised $10 billion, positioning Israel as the third-largest global tech fundraising hub 2.

Israel’s tech sector attracted $10.1 billion in private funding across 740 rounds since October 2023, demonstrating continued investor confidence despite geopolitical tensions 3.