CISO Network Investment Strategy

A unique investment strategy in cybersecurity where investors leverage Chief Information Security Officer (CISO) networks to guarantee initial revenue for portfolio companies.

Core Strategy Components

• Creates network of loyal CISOs from enterprise companies
• Makes CISOs partners in the investment fund
• Guarantees initial revenue of ~$2M/year for portfolio companies
• Uses initial revenue to help companies get to next funding round
• Creates difficult-to-compete-with advantage for portfolio companies

How It Works

• Builds relationships with CISOs through:
  • Dinners
  • Conferences
  • Network building
• Promises teams of fresh graduates from tech units:
  • Investment support
  • Initial guaranteed revenue
  • Help getting to next funding rounds

Results & Performance

• Fund Performance:
  • 22 companies with combined value of $35B
  • 5 of 22 companies became unicorns
  • 4 companies sold in last 12 months for $1.5B
  • Companies raised $1.8B in last 3 months
  • No failed companies in portfolio
  • IRR of over 100%
  • Ranked in top 5 VC funds globally

Controversy

• Creates discomfort among Israeli competitors
• Reached US markets where executives are "committed to Gil"
• System viewed as potential conflict of interest
• Creates difficult environment for competitors
• Companies immediately jump to $100-200M valuations
• Small initial purchases ($100-200k) increase startup values dramatically

Example Success: Wiz

• Fastest company to reach $100M in revenue (18 months)
• Raised $2B total funding
• $350M in annual recurring revenue in 3 years
• 80% of Fortune 100 companies are customers
• Last valuation at $12B
• Rumored Google acquisition offer for $23B