Gilly Raanan

Founder of venture capital firm Cyberstarts and two-time exited entrepreneur.

Claims

As speaker

Mentioned in

Key positions and views

The traditional venture capital model is fundamentally broken and unsustainable for most firms, headed for a 'serious catastrophe' due to excessive capital and misaligned incentives [33, 37].

The most critical factor in seed-stage investing is the founder's character and demonstrated grit, not their specific idea or technology, which is why Cyberstarts' process does not focus on the product idea [26, 27].

Elite software companies must demonstrate a specific, aggressive growth trajectory of 4x, 4x, 3x, 3x in year-over-year new ARR to be considered top-tier investments [7].

Providing structured, recurring liquidity to employees of portfolio companies is a key strategic initiative to attract and retain talent, meriting a dedicated fund [10, 38].

The Israeli cybersecurity ecosystem is poised to produce a company valued at $50-$100 billion within the next six years, despite a recent market-wide slowdown in unicorn creation [20, 8].

Podcast consensus on Raanan

Points of consensus

▶Both sources confirm Gilly Raanan's claims about the rapid, record-setting quarterly revenue growth of Wiz in its first year of selling, citing the same figures: $1M, $2M, $8M, and $24M per quarter [29, 35].Apr 2026

▶Raanan consistently states that the enterprise browser company Island has reached a valuation of approximately $5 billion, a key data point he uses in both discussions to illustrate market creation and high-growth success [24, 43].

▶The acquisition of portfolio company No Name Security by Akamai for approximately half a billion dollars is a consistent success story mentioned across Raanan's appearances [41, 44].Apr 2026

▶Raanan's belief in the exceptional performance of his firm, Cyberstarts, is a central theme, supported by claims in both sources regarding the high valuations and market dominance of its portfolio companies [13, 28, 45].Apr 2026

Points of debate

▶Raanan presents a tension regarding early liquidity: he regrets Cyberstarts selling Wiz shares early as it would have improved fund performance [9], yet he simultaneously champions and has created a dedicated fund to provide recurring, early liquidity to employees of his portfolio companies [10, 38].Apr 2026

▶He holds a critical, bearish view on the venture capital industry as a whole, stating the model is 'fundamentally broken' and will end in 'catastrophe' for many [33, 37], while simultaneously detailing the extraordinary success and returns of his own firm, Cyberstarts, positioning it as a stark exception to the rule [28, 45].Apr 2026

▶Raanan notes a recent market slowdown, with only a few Israeli cybersecurity companies becoming unicorns in 2023 and 2024 [8, 39], yet he makes the bold prediction that a company from Israel will reach a $50-$100 billion valuation within six years [20].Apr 2026

Key themes

▶The 'People-First' Investment Thesis

Raanan's founding investment thesis for Cyberstarts was to focus exclusively on cybersecurity and invest in founders without asking about their specific product or technology. He prioritizes founders who have demonstrated grit by overcoming significant personal difficulties early in life, believing this is a key indicator of future success [26, 27].

This founder-centric, idea-agnostic approach in a highly technical field like cybersecurity suggests Raanan believes execution and resilience are far more valuable than the initial concept, a key differentiator for investors evaluating his strategy.

▶Defining Elite GrowthApr 2026

Raanan has a specific and aggressive benchmark for what he considers exceptional startup growth: 4x, 4x, 3x, and 3x year-over-year growth in new ARR, resulting in a 144x increase over five years [7]. He frequently cites the unprecedented revenue ramp of portfolio company Wiz—from $1M to $24M in quarterly revenue in its first year—as the embodiment of this elite trajectory [29, 31, 35].

This quantitative framework provides a clear, albeit extremely high, bar for what Cyberstarts defines as success, indicating the firm is hunting for outliers with historically anomalous growth rather than just solid market performers.

▶Contrarian View on Venture CapitalApr 2026

Raanan expresses a deeply pessimistic view of the venture capital industry, stating the business model is 'fundamentally broken' and that the recent influx of capital will lead to a 'serious catastrophe' for many firms [33, 37]. He positions Cyberstarts' specialized, concentrated model as a successful anomaly in a dysfunctional system.

His public critique of his own industry serves as a powerful marketing tool, framing Cyberstarts not just as another VC firm but as a solution to the industry's endemic problems, which may appeal to both LPs and founders seeking a different kind of partner.

▶Pioneering Employee LiquidityApr 2026

Raanan is actively institutionalizing early liquidity for employees of his portfolio companies. Cyberstarts has created a dedicated 'employee liquidity fund' to establish recurring, annual secondary programs, with the first such program recently executed with the company Sayera [10, 38].

This strategy addresses a major pain point for startup employees (paper wealth) and can be a significant competitive advantage in attracting and retaining talent for Cyberstarts' portfolio companies, even if it means potentially sacrificing maximum fund upside.

Source episodes

Sentiment over time

Not enough data for timeline

Changes over time

1997

Raanan's first company, which developed the first commercial implementation of CAPTCHA, was backed by Sequoia Capital [21].

Pre-2008

Experienced two successful entrepreneurial exits: his first company (a WAF developer) was acquired by IBM, and his second was acquired by EMC [3, 4].

Circa 2008-2018

Worked at Sequoia Capital for approximately a decade, where he was influenced by the firm's culture of continuous improvement [1, 2].

2018

Founded the venture capital firm Cyberstarts with a $50 million first fund, based on a thesis of investing only in cybersecurity founders, not ideas [1, 26, 45].

2021

Within three years, Cyberstarts' first fund saw its nine portfolio companies reach a collective valuation of over $25 billion, turning a $50 million investment into nearly $2 billion in value [45].

Recent

Cyberstarts executed its first recurring employee liquidity program through a dedicated fund, purchasing millions of dollars in shares from employees of portfolio company Sayera [10, 38].

Suggested prompts

How does Raanan's 'people-first' investment thesis [26] reconcile with his highly specific and aggressive growth metrics [7] for portfolio companies? &nearr;Given his critique of the VC model as 'broken' [33], what specific structural elements of Cyberstarts does he believe make it a successful exception? &nearr;Raanan expresses regret over selling Wiz shares early for LP returns [9] while championing new employee liquidity programs [10]. How does he balance the goals of maximizing fund returns versus providing liquidity for stakeholders? &nearr;What are the potential risks and blind spots of Cyberstarts' narrow focus on only cybersecurity founders, many of whom may come from similar backgrounds like Israel's Unit 8200 [19]? &nearr;

Key concepts

Cyberstarts Investment Strategy 2 ep Wiz (company) 2 ep Venture Capital Industry Critique 2 ep Cybersecurity Market Trends 2 ep Portfolio Company Performance 2 ep Startup Growth Metrics 1 ep Employee Liquidity & Secondaries 1 ep Israeli Tech Ecosystem 2 ep Artificial Intelligence (AI) 2 ep

Notable quotes

“First of all, the venture business as a whole doesn't work. It doesn't work, it shouldn't work, and returns distribution are not divided equally between players”

Gili Raanan · Why Margins Don't Matter for Early-Stage Startups | Gili Raanan

“when I started Cyber Starts. One, cyber security only. Two I would not ask a single question about the idea of technology”

Gilly Raanan · Wiz: $6M Seed → $32B Exit | Inside the Biggest Cybersecurity Deal Ever

“if you go 4x, 4x, 3x and 3x on new ARR, not ARR, new ARR. So you in the first year, in the second year you do four times the new ARR that you have done in the first year. I'll save you the math that's 144x after five years.”

Gili Raanan · Why Margins Don't Matter for Early-Stage Startups | Gili Raanan

“I'm pretty sure that in six years, maybe less, we'll see a 50 billion dollar and 100 billion dollar cyber security company out of Israel.”

Gilly Raanan · Wiz: $6M Seed → $32B Exit | Inside the Biggest Cybersecurity Deal Ever

Report last updated: Apr 21, 2026

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