CISO Networks Drive Sales

A strategy for rapidly scaling cybersecurity startups by leveraging networks of Chief Information Security Officers (CISOs) to guarantee initial revenue, as demonstrated by the "Gil Model" used with Wiz and other cybersecurity companies.

Key Points:

• Network Building Strategy:

  • Build relationships with CISOs at enterprise companies
  • Make CISOs partners in the investment fund
  • Wine and dine them through dinners and conferences

• Revenue Generation Model:

  • Guarantees initial revenues of $2M/year for portfolio companies
  • Uses network of loyal CISOs to make initial purchases
  • Small purchases ($100-200K) from CISOs dramatically increase startup valuations

• Investment Structure:

  • CISOs accumulate "points" in the fund
  • Get additional allocations in future funds
  • Creates mutual benefit system between CISOs and portfolio companies

• Results Demonstrated:

  • Portfolio of 22 companies worth combined $35B
  • 5 unicorns created
  • No company failures in portfolio
  • Fund achieved 100%+ IRR
  • Ranked in top 5 VC funds globally

• Competitive Advantage:

  • Companies immediately jump to $100-200M valuations
  • Helps startups raise more money
  • Gives portfolio companies more resources to compete
  • Creates difficult environment for competitors without similar networks