For nearly 20 years, I’ve had the privilege of partnering with extraordinary founders who are driven not just to build great technology, but to build lasting companies. I’ve seen first hand how deeply talented teams – those who stay, innovate, and persevere – are the true engines of generational success. Whether it was during my days at Sequoia Capital or in building Cyberstarts, the lesson has always been the same: talent retention matters as much as product and go-to-market strategy - especially in markets where exits take years, not months.
That belief is at the heart of why we launched our $300 million Employee Liquidity Fund last year, an industry-first initiative designed to give portfolio companies a predictable, structured way to offer annual liquidity to their teams while keeping them fully engaged inthe company’s long-term mission. Rather than waiting for an IPO or acquisition – events that often take far longer these days – employees now have a recurring opportunity to realize some of the economic value they’ve helped create without having to leave the company to do so.
Today, I’m proud to share that Cyera is the first Cyberstarts portfolio company to participate in this program in conjunction with their recent employee tender offer, supported by our Employee Liquidity Fund with participation from Evolution Equity Partners. This marks an important milestone not just for Cyera, but for what we believe talent-first venture capital can look like at scale.
At its core, this program reflects two big truths I’ve seen in building and investing in companies:
--> Founders need retention tools that align long-term incentives. Today’s market realities – from extended private company lifecycles to slower IPO timelines – mean that traditional liquidity events often come too late for employees who are deeply invested in making the business successful. By enabling annual liquidity windows, we give founders a strategic tool to reward and keep top performers through every phase of growth.
--> Employees deserve predictable ways to share in success. There’s enormous value created by the people who show up day after day, tackle hard problems, and carry the company forward. That value shouldn’t be locked away until the distant future. Our fund gives employees a way to participate in that value creation without stepping away from the mission they believe in.
I’ve always said that venture capital should be about more than just capital. It should be about partnership with founders, with teams, and with the vision that drives them. The Employee Liquidity Fund is one of the ways we’re putting that philosophy into action. By providing dedicated allocations to each eligible Cyberstarts-backed company, we ensure that this tool can be flexibly and thoughtfully used in ways that align with each company’s stage, scale, and talent needs.
Seeing Cyera lead the way in implementing this program is deeply gratifying. It’s a reminder that when founders and investors share a long-term view, and when teams feel both recognized and supported, everyone is positioned to build something meaningful together.
I look forward to partnering with more of our founders and their teams as they continue to scale, innovate, and shape the future. This is just one step, but it’s an important one – toward a venture ecosystem that values people as much as product and performance.
-Gili Raanan
