Wiz Backer Raises $300 Million to Help Startup Employees Cash Out

Cyberstarts, the Israeli venture capital firm best known for its early investment in the cybersecurity company Wiz, has raised $300 million to buy shares from employees of the firm’s portfolio companies, co-founder Gili Raanan said.

Raanan, a former partner at Sequoia Capital, said the goal is to reward long-tenured employees with reliable and recurring opportunities to cash out vested shares. It’s part of a broader effort by Raanan to rethink the venture capital model as startups stay private longer and face new challenges.

“The venture model is not working well, especially in the early stage,” Raanan said. “We are trying to do whatever ...