Microsoft joins other firms to back Israeli tech with $500m investment in Team8

Microsoft joined forces with other major corporations to fuel the Israeli tech ecosystem by investing in venture capital firm Team8. It is part of a consortium that raised $500 million for Team8’s new funds through Walmart, Cisco, and more.

This investment comes amidst ongoing challenges for Israel, including the conflict with Hamas and recent political instability. However, Team8, founded in 2014, remains optimistic about the long-term potential of the Israeli tech sector.

Even if in the short-term there is less certainty, I think there is strong conviction in the world that in the long-term this is the place to be.

Said Yuval Shachar, managing partner and chairman at Team8.

When it comes to funding, the new funds will primarily focus on early-stage investments in Israeli startups operating in various technology fields, including cybersecurity, data infrastructure, artificial intelligence, and digital health. With the backing of Microsoft and other prominent investors, Team8 aims to support over 30 startups with these funds.

But if you wonder why Microsoft would indulge in a war-affected area, let us tell you that Microsoft’s involvement isn’t entirely unexpected, given their previous collaborations with Team8. In 2018, Microsoft Ventures, the company’s corporate venture capital arm, joined a $85 million funding round for Team8.

More here.