Israeli data security company Cyera has announced the completion of a $300 million financing round at a company valuation of $1.4 billion. The financing round was led by Coatue with the participation of new investors AT&T, Spark Capital and Georgian, and existing investors RedPoint, Accel, Sequoia and Cyberstarts. This brings to nearly $500 million the total amount raised by Cyera.
This latest large financing round reflects rising investment in growth companies after several years of stagnation. In the past few weeks alone Israeli startups including Fundguard, Coro and Hailo have completed financing rounds of more than $100 million each. By the end of this week Israeli startups are expected to have announced new financing rounds totaling $800 million.
Unlike the other Israeli startups that have recently announced large financing rounds, Cyera is the only one to have reached unicorn status through its new investment. The financing round makes it the biggest Israeli enterprise cloud data security company, after two of its rivals - Dig Security and Flow Security - were acquired over the past few months by international companies Palo Alto Networks and CrowdStrike, for $295 million and $120 million respectively. Two other Israeli rivals - BigID and Sentra - remain independent starrtups.
Cyera was founded by CEO Yotam Segev, and CTO Tamar Bar-Ilan, who served together in the IDF’s Unit 8200 where they founded, built, and ran the cloud security division. The company has developed an agentless, cloud-native platform, which can be deployed in minutes and uses native APIs to continuously discover, classify, and secure sensitive data.
Cloud data security companies like Cyera enable data security managers in organizations to control all the data in their information systems, whether it is the corporate cloud, local servers or endpoints such as computers and phones, and to know where critical data is located at any given moment. Through Cyera's platform, it is possible to provide a faster and more comprehensive snapshot of the criticality of stolen data - when such an event occurs - information of great value to data security managers in organizations.
Cyera has estimated annual revenue of $20-30 million, with an annual growth rate that was estimated last year at about 900%. Revenue growth is expected to be 500% this year, so annual revenue will reach a rate of $100 million within a few quarters. The company declined to comment on these figures. By comparison, Dig Security, at the time of the sale to Palo Alto, had annual sales of just a few million dollars. Cyera's customers include AT&T, Paramount Studios and Bank of New York (BNY) Mellon.
Published by Globes, Israel business news - en.globes.co.il - on April 9, 2024.
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