Team8 Raises $365 Million for Israeli Tech as War-Tested Startups Draw AI Bets
Updated
Updated · Ynetnews · Aug 23
Team8 Raises $365 Million for Israeli Tech as War-Tested Startups Draw AI Bets
1 articles · Updated · Ynetnews · Aug 23
Summary
$365 million in new Team8 capital marks a fresh vote of confidence in Israeli tech despite war, political uncertainty and concerns over talent retention.
Team8 partner Ori Barzilay said investors are backing Israel because founders have proved they can keep delivering under pressure, with resilience now visible in funding rounds, exits and new startup formation.
AI is central to that pitch: rather than chasing U.S.-dominated foundation models, Team8 sees Israel winning in infrastructure, middleware, security and deployment tools for enterprise adoption.
Barzilay said venture money is concentrating sharply—about 95% of capital is going to 5% of companies—raising the bar for Israeli startups to become standalone global businesses worth billions, not just acquisition targets.
He argued Israel now needs government support to deepen its AI ecosystem through incentives for major AI firms and by expanding military-to-civilian talent pipelines.