Team8 has raised $85 million from an “international coalition” of strategic partners to develop eight security startups over the next five years.
hose partners include Walmart, Airbus, SoftBank, Moody’s, Dimension Data, Munich Re, and Scotiabank, Singapore’s governmental holding company Temasek Holdings (Private) Ltd., credit rating company Moody’s Investors Service, Microsoft, Barclays PLC, South African IT company Dimension Data Holdings PLC, a subsidiary of Nippon Telegraph and Telephone Corporation (NTT), German insurer Munich Re Group, Canada’s Scotiabank, Nokia, and Cisco. Also participating are existing investors Bessemer Venture Partners and Innovation Endeavors.
Founded by former leaders of Israel’s military intelligence Unit 8200, Team8 has so far launched four companies and has another four operating in stealth mode. These portfolio companies are developing innovative approaches to cybersecurity. Team8 has now raised a total of $260 million and has 370 employees globally.
Team8 works by partnering with others to develop security companies that can solve problems arising from the rapid digitization of such large traditional businesses. In a press release, Team8 noted its partners were motivated to form a coalition after realizing many emerging security issues were beyond their capacity to address.
Following Team8’s company-building model, which is led by its own researchers and engineers, the collaborative effort will also include chief information officers and engineers from member organizations. Together, the group will decide how to develop companies around various cybersecurity issues and then back them with seed money.