Key Takeaways
- • Cyberstarts, a $1.4 billion cybersecurity-focused venture capital fund, is actively seeking a second Tel Aviv office tower after committing to 15 floors at Landmark B Tower in the Sarona complex, signaling aggressive expansion of its portfolio company footprint.
- • Nine of the fund's 25 portfolio companies will relocate to the "Cyber Campus" at Landmark B, with occupancy expected in approximately one year; these are primarily growth-stage startups with 100-200 employees including Glow, Vega, A Security, Onyx, Surf, and Spirit.
- • Co-founder Gili Raanan and General Partner Dor Knafo are negotiating with multiple real estate developers for a dedicated Cyberstarts tower or alternative space in nearby projects such as TOHA2 and the Spiral Tower (under construction), reflecting the fund's confidence in portfolio expansion capacity.
- • The shared campus model includes standardized infrastructure, shared amenities (gym, cafe), and common areas while allowing individual startups to customize office design, designed to reduce operational costs while fostering ecosystem collaboration among portfolio companies.
- • Largest portfolio companies including Island, Upwind, and Cyera will remain in existing offices, indicating a tiered real estate strategy that keeps unicorns and mega-funded firms in their current locations while consolidating mid-stage growth companies into centralized campuses.
Summary
Cyberstarts, the $1.4 billion cybersecurity venture capital fund founded by Gili Raanan, is pursuing a second Tel Aviv office tower to accommodate its expanding portfolio, according to reporting from Calcalist. The move follows the fund's commitment to lease 15 floors at Landmark B Tower in Tel Aviv's Sarona complex for a shared "Cyber Campus" designed to house its portfolio companies.
The fund's real estate expansion reflects confidence in its portfolio's growth trajectory. Nine of Cyberstarts' 25 portfolio companies are expected to migrate to Landmark B, which is scheduled for occupancy in approximately one year. These companies—Glow, Vega, A Security, Onyx, Surf, and Spirit—represent the fund's mid-stage cohort, each with between 100 and 200 employees that have raised significant capital and are in rapid scaling phases. Notably, Cyberstarts' largest holdings, including Island, Upwind, and Cyera (currently based in Landmark Tower A), will remain in their existing offices, indicating a segmented real estate strategy.
Co-founder Gili Raanan and General Partner Dor Knafo are actively negotiating with multiple real estate developers to secure a second location. The fund is considering options for a dedicated tower built specifically for Cyberstarts or alternatively acquiring vacant space in nearby projects including TOHA2 and the Spiral Tower, which remains under construction. This dual-track approach suggests flexibility around the timeline and structure of the expansion.
The Cyber Campus model incorporates infrastructure standardization to control costs while allowing individual startups to design their own office environments. Cyberstarts will occupy shared common space featuring a gym, cafe, and collaborative facilities. This model appears designed to create an ecosystem effect among portfolio companies while reducing per-tenant occupancy expenses—a strategic approach common among venture platforms seeking to maximize portfolio company cash runway and profitability.
The expansion underscores Cyberstarts' positioning as an active portfolio manager in Israel's cybersecurity sector, with the fund having deployed capital across 25 companies. The real estate commitment signals management confidence in sustained growth across its portfolio and reflects broader investor appetite for cybersecurity solutions in a market marked by high deal activity and elevated valuations.
The fund's real estate expansion reflects confidence in its portfolio's growth trajectory. Nine of Cyberstarts' 25 portfolio companies are expected to migrate to Landmark B, which is scheduled for occupancy in approximately one year. These companies—Glow, Vega, A Security, Onyx, Surf, and Spirit—represent the fund's mid-stage cohort, each with between 100 and 200 employees that have raised significant capital and are in rapid scaling phases. Notably, Cyberstarts' largest holdings, including Island, Upwind, and Cyera (currently based in Landmark Tower A), will remain in their existing offices, indicating a segmented real estate strategy.
Co-founder Gili Raanan and General Partner Dor Knafo are actively negotiating with multiple real estate developers to secure a second location. The fund is considering options for a dedicated tower built specifically for Cyberstarts or alternatively acquiring vacant space in nearby projects including TOHA2 and the Spiral Tower, which remains under construction. This dual-track approach suggests flexibility around the timeline and structure of the expansion.
The Cyber Campus model incorporates infrastructure standardization to control costs while allowing individual startups to design their own office environments. Cyberstarts will occupy shared common space featuring a gym, cafe, and collaborative facilities. This model appears designed to create an ecosystem effect among portfolio companies while reducing per-tenant occupancy expenses—a strategic approach common among venture platforms seeking to maximize portfolio company cash runway and profitability.
The expansion underscores Cyberstarts' positioning as an active portfolio manager in Israel's cybersecurity sector, with the fund having deployed capital across 25 companies. The real estate commitment signals management confidence in sustained growth across its portfolio and reflects broader investor appetite for cybersecurity solutions in a market marked by high deal activity and elevated valuations.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.