Eilat Partners

As entrepreneurs, we often talk about the thrill of the startup journey, but let's not forget a crucial area: Cybersecurity. In today's digital age, a single breach can ruin even the most promising venture. This isn't just an IT issue—it's a business-critical concern that affects all levels of your organization. As someone who invests in startups and advises founders, I cannot stress enough the importance of integrating strong cybersecurity measures from Day 1. Are you prioritizing cybersecurity in your startup? If not, what's holding you back? Let's discuss how we can make securing our digital assets as exciting as growing our businesses. Share your thoughts or experiences below!

Ever thought about how cybersecurity and investment strategies intersect? In our digital age, cybersecurity isn't just a tech concern—it's a crucial part of any investment strategy. Whether you're backing a promising startup or managing assets, overlooking cyber risks can cost you more than just money. So, what should investors be looking for? Start by evaluating the cybersecurity measures of potential investments. Are they proactive or reactive? What’s their incident response plan like? Ask these tough questions during due diligence to protect your assets from unforeseen vulnerabilities. How do you incorporate cybersecurity into your investment decisions? Let's discuss in the comments!

Ever wondered why startups fail before they even get off the ground? In my years of experience as an entrepreneur and venture capitalist, I've seen some common pitfalls that new businesses fall into. From underestimating market demand to overextending financially, these mistakes can be fatal. The key is thorough research and realistic financial planning. A solid foundation isn't just built on a groundbreaking idea but on understanding the ecosystem it will inhabit. So, what are your thoughts? What do you think is the most critical factor in a startup's early success? Let’s discuss in the comments!

NightDragon is on a mission to secure our world for tomorrow.?For that reason, we?are proud to announce we are leading a $45 million Series C round in Rhombus, alongside investors Bluestone Equity Partners, other investors, and existing insiders Caden Capital Partners, Cota Capital, Tru Arrow Partners, and Uncorrelated Ventures! We are entering a new era of physical security, driven by AI and the cloud. NightDragon recognizes the significance of this transformation and the impact it will have on the physical security market, as well as the new market opportunity it presents.?We believe this growth presents an immense opportunity for Rhombus given the power of its team and technology.? ? Read more about the investment on our blog: https://lnkd.in/e64DTwfY

Equity is your company's lifeblood. ?? Every ambitious founder knows that world-class talent is the foundation of success. But how do you attract and retain such talent, especially when you can’t always compete on salary alone? Reward them with equity. Equity isn't just a financial incentive; it's a psychological ownership that aligns their success with the company’s success. It transforms employees from mere workers to stakeholders who have a vested interest in seeing the company grow and prosper. **1. How much Fully Diluted Equity (FDE) should go to your ESOP (Employee Stock Option Plan)?** A good rule of thumb for early-stage startups is to allocate between 10%-20% of your fully diluted equity post-round to the ESOP. This might seem like a significant portion, but it’s essential if you want to build a team that's committed for the long haul. This allocation should be enough to cover both current employees and new hires you'll need to meet your next milestones. Adjust based on the talent needed to hit your next milestone. For example, if you're heading into a phase where rapid scaling is critical, you might lean towards the higher end of that spectrum. Conversely, if you’re in a more stable growth phase, you might allocate less. **2. How much ESOP should each employee get?** Senior roles and key hires demand more equity to compensate for their critical contributions: - **C-Level Executives**: Typically, 1% to 5%, depending on the stage of the company and their past experience. - **VP-Level**: Around 1% to 2%. - **Senior Engineers/Product Managers**: Typically around 0.5% to 1%. - **Junior Engineers and other key roles**: Around 0.1% to 0.5%. - **BizDev/Sales roles**: Usually range from 0.1% to 0.4%, as they tend to be more cash-focused. It's essential to communicate clearly to your team about the potential value of their equity. Equity compensation plans can be complex, involving vesting schedules, strike prices, and tax implications. Make sure your team understands how and when they can realize the value of their equity. **3. Vesting Schedules and Cliffs** Vesting schedules are standard practice to ensure commitment. A common vesting schedule is four years with a one-year cliff. This means employees earn 25% of their stock options after one year, and #esop #startups #founders #venturecapital #team

Venture capital is sparking a revolution in the cybersecurity industry.?? Let me tell you a story. Instead of a local bank vault guarding our valuables, our treasures are now digital - personal information, confidential data, all stored on virtual platforms. ???? Venture capitalists saw this seismic shift. They didn't just keep up; they drove the innovation. ?? Take, for example, the rising startup Zscaler. They captured the attention of venture capitalists, garnering $148 million in funding. The result? A groundbreaking cloud-based solution that has altered the landscape of cybersecurity. ?? Venture capital isn't just funding. It's about believing in potential and taking bold risks to fuel transformative ideas.?? What innovative cybersecurity solutions have you seen lately that excite you? Let's dive into novel ideas and discuss the future of cybersecurity.??

**Raising a first VC fund isn't for the faint of heart.** Even with a solid thesis and a focus on a booming sector like CyberSecurity, the uphill battle remains. In theory, investing in CyberSecurity is a no-brainer. The digital world is expanding, threats are evolving, and the need for robust security solutions is more critical than ever. But translating that into trust and dollars? That's a different story. Last month, I walked into a room of potential investors, armed with data, projections, and a vision. Yet, the questions weren't just about the market potential. They were about trust. Why should we believe in *you*?" It hit me—raising funds isn't just about selling a concept. It's about selling yourself. Building this trust takes time, countless meetings, and facing more "no's" than "yes's. But the journey is worthwhile for those creating a safer digital future. To all fellow first-time fundraisers: keep pushing. Your persistence today builds the trust you need for tomorrow. **What’s your biggest struggle in fundraising? Let's share insights and support each other!**

Don't blink, or you'll miss the future. Eilat Partners is on a mission to revolutionize the Cyber Security and AI landscape for businesses and everyday consumers. The magic lies in merging the brains – talents from the intelligence and defense communities - with the brawn – the academic prowess of DC/Virginia business schools like McDonough at Georgetown University, Darden at University of Virginia, and Mason at William and Mary. But that's not all, venture capital funds are giving a critical boost, providing the necessary fuel to launch innovative companies, poised to disrupt and redefine our tech-riddled lives. Ready to watch us change the game? Stay tuned – we're just getting started.

In the world of investments, the VC realm is not for the faint-hearted. The venture capital landscape is like a daring voyage into a sea filled with promise and peril alike. It's a world where the bravest innovators get their chance to bring unique ideas to life. Yet, this journey isn't always smooth sailing—there's risk involved and high failure rates. As an investor, you need to have in-depth industry knowledge, an eye for detail, and most importantly, a strong instinct. You're not just investing in an idea; you're investing in people—the beating hearts whose relentless drive makes all the difference. At its core, venture capital isn’t just about transactions; it’s about transformation—of industries, economies, societies as we know them. Remember: Great ideas don't always come wrapped in neat packages. Sometimes they are messy and challenging but yield the greatest rewards in hindsight.

Is Cybersecurity Investment the Next Gold Rush? Let's talk about where smart money is heading. As the digital economy expands, so does the need for robust cybersecurity solutions. Here’s why: The global cybersecurity market could grow from $217 billion in 2021 to nearly $345 billion by 2026. This uptick is no coincidence. With increasing cyber threats, companies are doubling down on their defense mechanisms. Investing in cybersecurity isn't just about mitigating risks—it's about seizing opportunities. From startups offering innovative solutions to established firms expanding their services, the potential for growth is immense. So, what does this mean for investors? It's a call to action. In a world where digital assets are as critical as physical ones, investing in cybersecurity isn’t just prudent—it’s essential. Consider this: When you're investing in cybersecurity, you're not just betting on companies; you're betting on the future of secure digital economies. Let's secure our digital future together. The next gold rush? It might just be in cyberspace.