2025 is shaping up to be exceptional for Israeli cyber - not only because of the staggering sums involved in acquisitions, but because of the shift in mindset these deals are creating among employees. Two historic exits have taken place in recent months: Wiz, acquired by Google (Alphabet) for $32 billion, and CyberArk, sold to Palo Alto Networks for about $25 billion. Beyond the dramatic headlines, one insight is becoming clear: employees aren’t just waiting for an exit - they are preparing for it, and sometimes realizing part of it in advance.
In the past, the norm was to hold onto your options and hope for the best. Today, it’s clear that shares and options are a financial asset that requires strategy. And that strategy begins with understanding: many cyber exits don’t come through flashy IPOs, but through mergers and acquisitions - usually by large technology corporations, global cybersecurity companies or private equity funds.
This has clear advantages: in a private acquisition, employees aren’t exposed to stock market volatility. The exercise price is predetermined, the profit amount is clear and usually paid out immediately upon acquisition. But there are also disadvantages, foremost among them: liquidity preferences. Employees often hold common stock, while institutional investors enjoy preferred stock, which grants priority in payouts during a sale. As a result, despite a large sticker price for the company, its employees may not see a huge profit if the sale does not exceed the threshold required for common shareholders to receive payment.
Faced with the uncertainty of waiting for an exit, more and more employees and executives at private companies - especially in cyber - have in recent years chosen to sell part of their holdings early through the secondary market. This is part of a rapidly expanding global trend: according to a Jefferies report, the global secondary transactions market hit a record ~$162 billion in 2024, a 45% jump compared to 2023, and is expected to keep growing through the end of 2025. Venture capital is also seeing heightened activity: per PitchBook, the U.S. secondary market for private tech companies reached about $60 billion in Q1 2025.
Some of these deals are made by institutional investors or funds, but an increasingly larger share comes from employees, founders and executives who want to hedge risks and enjoy some of the value they’ve accrued - before a formal liquidity event. While there’s no official data pinpointing exactly what portion of secondary deals employees represent, the trend is clear: private liquidity is becoming a financial planning tool that allows employees to actively manage their financial future instead of waiting passively for an IPO or sale.
The growth isn’t accidental. The average time to exit has stretched significantly - from 5–7 years in the previous decade to about 10 years today. Over that period, employees go through major life stages: starting families, buying homes, dealing with the high cost of living - and they can’t always wait for a big liquidity event. Some sell to diversify risk, others to take advantage of investment opportunities. The common denominator is clear: they’re choosing to be entrepreneurs of their own personal financial portfolio.
Amplefields Investments Managing Partner Moran Chamsi Photo: Merav Ben LoulouEarly exercise or sale of shares and options looks simple on paper, but requires careful planning. Not every secondary deal is worthwhile, and not every market is truly suitable. It’s critical to understand what you hold: has full vesting occurred? What is the exercise price? Are there contractual restrictions on sale? Beyond that, one must consider tax implications, internal valuation (409A), and the legal standing of the buyer.
There’s also an organizational dimension. Large unilateral sell-offs by employees can sometimes be seen by management or the board as a vote of no-confidence, and may even create unnecessary internal tensions. That’s why the right approach today is transparency and coordination: an open conversation with company leadership, declaring intentions in advance, and acting within boundaries respected by both sides.
Companies, for their part, are also recognizing the benefits of structured, managed secondary processes. Increasingly, management teams prefer to see experienced secondary funds on their cap tables — reputable players with deep understanding of capital structures and growth, who can support future rounds, not just cash out and leave. This approach creates two-sided value: liquidity for employees, and strong partnerships for the company.
In the end, financial risk management is no longer just for investors. In an era of Israeli cyber exits worth tens of billions, employees understand that success depends not only on luck but also on preparation, planning, and transparent relationships with company leadership.
- Moran Chamsi is a managing partner at Amplefields Investments