Cyberstarts, a prominent early-stage cybersecurity venture firm, has introduced a $300 million Employee Liquidity Fund to support talent retention and fuel growth in its portfolio companies. This innovative initiative provides structured liquidity opportunities for employees, reinforcing Cyberstarts’ commitment to fostering long-term innovation in the cybersecurity sector. With this fund, Cyberstarts exceeds $1 billion in total capital commitments, solidifying its leadership in the industry.
Cyberstarts launches $300M Employee Liquidity Fund for portfolio companies.
Fund offers annual liquidity windows for employees to sell vested shares.
Initiative aims to retain talent and drive long-term cybersecurity innovation.
Cyberstarts surpasses $1B in capital commitments with this fund.
Portfolio includes leading startups like Wiz, Fireblocks, Island, and Cyera.
Fund strengthens employee commitment while supporting startup growth.
The $300 million Employee Liquidity Fund is designed to reward and retain key talent across Cyberstarts’ portfolio of cybersecurity startups. By offering annual secondary windows for employees to sell a portion of their vested shares, the fund ensures financial flexibility without requiring employees to leave their roles. This approach aligns incentives, fostering a culture of commitment and innovation. Cyberstarts collaborates with portfolio companies to determine eligibility based on scale and talent needs, with HR teams managing implementation.
“At Cyberstarts, we have always made it our mission to nurture and motivate talent from idea through execution – and that includes finding new ways to have deeply technical cybersecurity talent stay and thrive at our portfolio companies,” said Gili Raanan, Founder of Cyberstarts. “With this new fund, we are hoping to go even further to support our portfolio companies – creating a retention tool that rewards employees with a way to participate in their company’s early success while staying focused on the long term vision.”
The fund addresses the challenges of extended IPO timelines in today’s market, where cybersecurity startups often remain private for longer periods. By providing predictable liquidity, Cyberstarts enables employees to share in their company’s success while staying committed to long-term goals. This is particularly critical for companies like Cyera and Island, which are building innovative solutions in competitive markets.
“In today's market, we’re seeing industry-leading technology companies scale to extraordinary heights over years and years with continued drive and commitment of their original employees,” shared Yotam Segev, Co-Founder and CEO of Cyera. “At Cyera, we’re building a lasting company in a critical industry, which requires retaining and motivating the very best talent over a long time horizon. Cyberstarts has been supporting our mission from day one, and this new liquidity program supercharges our team by rewarding them with reliable and predictable liquidity.”
Cyberstarts’ portfolio includes nearly 30 investments, with notable Seed-round investments in category leaders like Wiz, Fireblocks, Island, and Cyera. The Employee Liquidity Fund enhances the firm’s ability to support these companies by fostering a talent-first approach. Each eligible portfolio company receives a dedicated allocation within the fund, allowing for flexible, founder-aligned implementation. This initiative underscores Cyberstarts’ innovative approach to venture capital, prioritizing both employee satisfaction and company growth.
“To build a fundamentally new category at a company like Island, we require deep expertise, long-term commitment, and a shared sense of purpose from our team,” said Michael Fey, Co-Founder and CEO of Island. “Especially given today’s extended IPO timeline, secondary equity transactions are becoming an essential component of the employee experience at startups that choose to remain private and independent. This new commitment from Cyberstarts is a tremendous asset as founders work to deliver an exceptional workplace.”
Cyberstarts’ launch of the $300 million Employee Liquidity Fund marks a significant milestone in its mission to drive cybersecurity innovation. By prioritizing talent retention and financial flexibility, the fund strengthens the ecosystem of its portfolio companies, positioning them for sustained growth and success in the cybersecurity industry. This initiative, combined with Cyberstarts’ surpassing $1 billion in capital commitments, reinforces its role as a leader in early-stage cybersecurity investment.
Since its founding in 2018, Cyberstarts has operated with a singular goal: to support exceptional founders from idea to execution. As one of the only venture firms built specifically for cybersecurity entrepreneurs, Cyberstarts invests before there’s a product, a team, or even a single line of code—backing founders who have identified a challenge and have the grit to solve it. With deep domain expertise and hands-on partnership, Cyberstarts works side-by-side with founders to refine go-to-market strategy, build out early teams, and tap into a trusted network of global CISOs. Cyberstarts has raised more than $1 billion across 6 funds. Its portfolio accounts for nearly 50% of the global market cap of private cybersecurity companies. As the investment partner of choice for the most ambitious cybersecurity founders, Cyberstarts is proud to be counted as a seed investor in today’s most notable solutions, including Wiz, Fireblocks, Cyera, Island, and Transmit Security, among others.
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