Data security firm Cyera is nearing completion of a funding round led by Evolution Equity Partners worth at least $300 million, placing its valuation at $12 billion, as reported by four sources familiar with the negotiations.
Calcalist broke the news about the funding, while insights from ToolsMixAi shed light on the company’s financial standing and operations.
According to three individuals privy to the information, Cyera has eclipsed $150 million in annual recurring revenue (ARR), yet it is not yet in the black. This funding round values Cyera at a multiple of 80 times its ARR, exceeding valuation benchmarks typically assigned to many emerging AI companies.
Insiders revealed to ToolsMixAi that the company’s expenditures are mounting faster than its revenues. A significant portion of these costs is attributed to expanding its sales team. As noted by PitchBook, Cyera has increased its workforce by 500 positions in 2023 alone.
A spokesperson for Cyera stated that “the numbers cited are factually and significantly inaccurate.” Meanwhile, Evolution Equity Partners did not reply to a request for comment.
This new round comes just five months after Cyera raised $400 million in a Series F round at a $9 billion valuation. That round was led by Blackstone and included contributions from existing stakeholders such as Accel, Coatue, Lightspeed, Redpoint, Sapphire, Sequoia, Cyberstarts, and others. The latest funding will elevate Cyera’s overall capital to at least $2 billion.
Established in 2021, Cyera has gained traction as organizations increasingly rely on its platform to protect data from adversaries leveraging AI. At the time of its Series F announcement, the company indicated that one-fifth of the Fortune 500 relied on its services, with revenue tripling in 2025.
Recently, Cyera has channeled its funds into covering operational deficits as well as acquiring cybersecurity firms, notably Ryft, backed by Index Ventures, and the relatively new Genie Security.
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This funding is significant as it illustrates investor confidence in cybersecurity solutions amidst rising threats. With a hefty war chest, Cyera is poised not only to enhance its service offerings but to solidify its competitive edge in an increasingly saturated market.
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