Cyberstarts raises $360 million across two funds, including $300 million for Cyera
The Israeli venture capital firm has established a dedicated investment vehicle for Cyera's reported $800 million funding round at a $20 billion valuation, alongside its fifth $60 million seed fund.
Israeli venture capital firm Cyberstarts, which specializes in early-stage investments in the cybersecurity sector, has raised approximately $360 million across two new investment vehicles, Calcalist has learned.
The larger of the two is a dedicated $300 million fund established to invest in Israeli cybersecurity company Cyera, as part of a funding round expected to total approximately $800 million and value the company at around $20 billion. The second is Cyberstarts' fifth seed fund, which has raised approximately $60 million, in line with the size of its four previous seed funds. As with its other seed funds, the capital came from entrepreneurs and private investors, most of them from the cybersecurity industry.
The $300 million vehicle is structured as a special purpose vehicle (SPV), a legal entity established to pool capital from multiple investors for a specific investment. Rather than having dozens of individual investors appear on a startup's capitalization table, the SPV is registered as a single shareholder, represented by its manager. The structure simplifies the company's shareholder arrangements, including legal administration, voting and future fundraising.
The investment in Cyera represents an unusual move for Cyberstarts, which has traditionally focused on identifying and backing cybersecurity entrepreneurs at the seed stage, often before they have developed a product. Its willingness to commit $300 million to a company already valued in the tens of billions of dollars reflects the close relationship it has built with Cyera's founders and its confidence in the company's prospects.
Cyberstarts was founded in 2018 by Gili Raanan and is managed by Raanan alongside partners Lior Simon, Hila Zigman and Dor Knafo. Its operational partners include Adam Aarons and Pete Chronis.
The firm has built a prominent portfolio of cybersecurity companies, including Wiz, which was acquired by Google for $32 billion, as well as Upwind, Fireblocks, Cyera and Island. Cyberstarts backed Cyera at the seed stage in 2021, investing $4.2 million at a valuation of approximately $15 million. It has participated in subsequent funding rounds, including the company's $600 million financing in June 2026 at a $12 billion valuation.
In September 2025, Cyberstarts said it managed more than $1.4 billion across seven funds. Its new $60 million vehicle is its fifth seed fund, distinct from the firm's other investment vehicles.
