Early-stage cybersecurity venture firm Cyberstarts has announced a $300 million initiative to reward startup employees and help its portfolio companies retain talent.
The investment vehicle, called the Employee Liquidity Fund, allows employees at companies across the firm’s portfolio to sell part of their vested shares without leaving their company.
This built-in path to liquidity, the venture firm says, will help companies align incentives, and sustain long-term employee commitment.
Eligibility will be determined for each portfolio company, based on the entity’s scale and talent needs, while the HR teams at each company will be in charge with the implementation.
Dedicated allocations within the Employee Liquidity Fund will be provided to each Cyberstarts-backed company, ensuring implementation flexibility, the cybersecurity venture firm says.
To date, Cyberstarts has made close to 30 investments, including in seed rounds at well-known cybersecurity companies such as Wiz (pending acquisition by Google), Fireblocks, Island, and Cyera.
Island, a late-stage startup selling a security-themed enterprise browser, has raised more than $730 million in funding and has partnered with Cyberstarts.
“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,” said Michael Fey, Co-Founder and CEO of Island. “This new commitment from Cyberstarts is a tremendous asset as founders work to deliver an exceptional workplace.”
Data security company Cyera, which has raised more than $1.3 billion, including a recently announced $540 million Series E round in June 2025, says its employee liquidity program is a huge benefit for retaining and attracting employees.
“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,” said 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.”
The closing of the Employee Liquidity Fund brings the total raised by Cyberstarts in capital commitments to over $1 billion, across six funds.
“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,” Cyberstarts founder Gili Raanan said.
Related: Google’s $32 Billion Wiz Deal Draws DOJ Antitrust Scrutiny: Report
Related: Horizon3.ai Raises $100 Million in Series D Funding
Related: ThreatSpike Raises $14 Million in Series A Funding
Related: Push Security Raises $30 Million in Series B Funding
