Cyberstarts Launches $300M Liquidity Fund to Help Startups Retain Top Talent

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 ...