Cyberstarts, a venture capital fund that focuses on early-stage cybersecurity startups, announced on Thursday that it has raised $480 million to make follow-on investments in its portfolio companies. The fund, which is backed by Sequoia Capital and some of the most successful cybersecurity entrepreneurs in Israel, aims to support the growth of the next generation of cybersecurity leaders.
Cyberstarts: A unique VC fund for cybersecurity
Cyberstarts was founded in 2018 by Gili Raanan, a veteran tech investor and partner at Sequoia Capital Israel. The fund’s mission is to identify and invest in the most promising cybersecurity startups in Israel, which is known as a global hub for innovation in the field. Cyberstarts claims to be the first VC fund that is solely dedicated to cybersecurity and led by former founders and operators of successful cybersecurity companies.
Some of the investors and advisors in Cyberstarts include Shlomo Kramer and Marius Nacht, founders of Check Point Software Technologies; Mickey Boodai and Rakesh Loonkar, founders of Trusteer and Transmit Security; Nir Zuk, founder of Palo Alto Networks; Assaf Rappaport, founder of Wiz and Adallom; and Roy Zisapel of Radware. The fund also leverages the expertise of chief information security officers (CISOs) from leading US companies such as Starbucks, Home Depot, Walmart, and Zoom, who provide feedback and insights to the portfolio companies.
Cyberstarts’ portfolio: From seed to unicorn
Cyberstarts has invested in more than 20 cybersecurity startups since its inception, with a focus on seed and Series A rounds. The fund’s portfolio covers a wide range of domains such as cloud security, API security, identity management, threat intelligence, and blockchain security. Some of the notable companies backed by Cyberstarts are:
- Fireblocks: A platform that enables secure transfer and storage of digital assets across parties and wallets. Fireblocks raised over $500 million in 2021 at a valuation of $8 billion.
- Wiz: A cloud security platform that provides visibility and protection for cloud environments. Wiz raised $250 million in 2021 at a valuation of $6 billion.
- Axis Security: A cloud-based platform that enables secure access to any application from any device. Axis Security was acquired by Hewlett Packard Enterprise (HPE) in 2021.
- Bionic: A cloud security startup that helps enterprises detect and prevent unauthorized access to cloud resources. Bionic was acquired by CrowdStrike for an estimated $350 million in 2021.
- Legit Security: A cybersecurity startup that provides automated vulnerability management and remediation for web applications. Legit Security raised $40 million in 2021.
Cyberstarts’ opportunity fund: Supporting the growth stage
The new funding round brings Cyberstarts’ total capital under management to over $800 million. The fund said that the additional capital will be used to make follow-on investments in its portfolio companies that are raising Series A and Series B rounds. The fund said that it wants to provide continuous support to its entrepreneurs as they scale their businesses and become market leaders.
“The Opportunity fund is another assurance for them and a new generation of entrepreneurs that we can and will support them with a constant flow of cash as they grow their businesses,” said Raanan.
Cyberstarts also said that it is looking for new investment opportunities in the cybersecurity space, especially in areas such as zero trust, data privacy, quantum computing, and artificial intelligence.
