Announcing Team8 Enterprise Fund III: Creating the Next Frontier of Cyber, AI, and Data Infrastructure

Raising the bar in enterprise tech. Today we are announcing that Team8 has closed its third Venture-Creation Enterprise Fund, with USD $110 million in committed capital. The Enterprise Fund III (VE III) will continue the practice that has helped Team8 become a global powerhouse in enterprise tech – partnering with world-class founders to tackle the greatest challenges organizations are facing today.

With data and software now underpinning every aspect of enterprise operations, we are seeing the rapid emergence of the next wave of digital transformation. This wave is characterized by an even faster rate of change as advancements in artificial intelligence (AI) cause shockwaves across industries, and it is occurring against the backdrop of an increasingly unstable world and markets, and rising geopolitical tensions. 

To adapt to this new reality, organizations will need to embrace a host of new technologies, quickly. We are looking forward to partnering with the industry’s leading entrepreneurs, serial founders, and operators, to jointly build and invest in new startups that will accelerate innovation in cybersecurity, data infrastructure, and AI. 

A battle-tested model for unlocking massive enterprise value

VE III is Team8’s third enterprise fund, following previous enterprise funds raised in 2014 and 2018. These two funds have resulted in five exits (Sygnia, Hysolate, Portshift, VisibleRisk and Curv) and one unicorn (Claroty). We believe that their success and the ongoing success of our portfolio is largely attributed to the unique operating model that sets Team8 apart from other players in the venture space. 

In the last decade, Team8 has pioneered a singular approach that combines ‘traditional’ venture investment with company building (through our Enterprise Foundry vehicle). It is not uncommon for Team8 partners to become founders and operators in portfolio companies, and vice versa. This hands-on perspective allows us to be present in the places where work actually happens – customer calls, R&D meetings, and product feedback sessions – and to see the industry at eye level. 

The model is further predicated on an unwavering commitment to community development, which has also been a hallmark of Team8’s activity for many years now. Through our exclusive Data and Cyber Villages, we facilitate a close-knit network of executives – Chief Information Security Officers (CISOs), CDAOs (Chief Data and Analytics Officers), and other leaders, who are responsible for making strategic technology decisions, in the world’s largest companies. By bringing these communities together, we gain further insights from the frontlines of industry, creating a virtuous feedback loop that allows us to identify meaningful problems, build better companies that address them, and accelerate go-to-market for the entrepreneurs we partner with. 

We are certain that all of these elements – company building, community development, esteemed founders and a proven track record – contribute to a high level of confidence in Team8’s ability to launch the next generation of enterprise software companies. We will use the new fund to stay this course: building and investing in the very best startups and entrepreneurs, growing our industry leadership and subject matter expertise, and laying the foundation for further innovation across the ecosystem.

We’ve got some big plans – and we can’t wait to get started

VE III gives us a new vehicle to create value and drive transformative change in several key areas. Uncoincidentally, these are closely aligned with Team8’s core mission and expertise:

Cybersecurity. As global conflicts persist and intensify, cyber threats are increasing. New threat vectors and growing dependence on cloud technologies are forcing security leaders to rethink many long-held assumptions. Cybersecurity investments have remained high, even amidst a broader contraction in software spend.

We plan to focus on the challenges that have dominated conversations among CISOs in the Team8 Village – securing AI systems and enabling organizations to adopt AI without jeopardizing privacy or security; managing third-party and supply chain risk; cloud security; identity and entitlement management; and growing insider threats. 

Team8’s long-standing leadership in this space will enable us to build the next wave of cybersecurity solutions – built for a world that is being transformed by new technology on the one hand, while becoming more dangerous and unpredictable on the other.

Data infrastructure. Despite heavy investment in data tooling and infrastructure, enterprises are still struggling to harness the power of data and analytics to extract value –  a promise long made but never truly fulfilled. With maturing enterprises’ data stack and maturing data technologies, we see opportunities across diverse data categories to address these issues. 

The emerging technologies introduce both new challenges and opportunities: the surge in Generative AI disrupts traditional data practices while simultaneously emphasizing the importance of data and necessitating fresh datasets and tools. Enterprises that utilize their data intelligently and embrace the capabilities of GenAI stand to secure a formidable competitive advantage in the evolving digital arena.

On the infrastructure side, we identify significant opportunities in several key areas, including: enhancing data storage and computing capabilities, aiming for greater computational efficiency and refined data pipelines; advancing data management and governance; and developing AI/ML operations. These areas represent key targets for fostering innovation and efficiency in the data-driven landscape.

We are embarking on our 3rd enterprise fund in a critical and exciting time. The world’s major democracies are heading into elections during an all-time low in public trust. At the same time, breakthroughs in Generative AI offer incredible opportunities for makers and breakers alike. I believe Team8 is uniquely positioned in this environment to continue working with bold leaders and our unique Cyber and Data villages to build meaningful companies that will enhance trust by tackling big cyber challenges, and capture the promise and opportunities of the next few years.

– Nadav Zafrir, Co-founder and Managing Partner, Team8

Build the things that matter with Team8

If you’re an entrepreneur who lives and breathes enterprise, and who likes to move fast and take big swings, Team8 might be the place to bring your next idea to life. The challenges that lie ahead are significant, but we are more than ready to build and launch the companies that can solve them. Join us on this exciting journey.