Data storage security company Cyera has closed a round of at least $300 million led by Evolution Equity Partners at a valuation of $12 billion, according to four people familiar with the deal.
Calcalist was first to report the funding deal, but TechCrunch’s sources added new details about the company and its finances.
Cyera has surpassed $150 million in annual recurring revenue (ARR), three people familiar with the matter told TechCrunch. But profitability is still a long way off. The transaction values Cyera at 80 times ARR. This is a much higher multiple than investors are assigning to many fast-growing AI startups.
Sources told TechCrunch that the company is spending money faster than it is making it. Some of these costs are used to hire sales staff. Cyera has added 500 jobs so far this year, according to PitchBook.
“The figures quoted are true and significantly inaccurate,” a Syera spokeswoman said. Evolution Equity Partners did not respond to a request for comment.
The new round is expected to come five months after Cyera announced it had raised a $400 million Series F at a $9 billion valuation led by Blackstone, with participation from existing investors including Accel, Coatue, Lightspeed, Redpoint, Sapphire, Sequoia, Cyberstarts and others. The upcoming round will bring Cyera’s total capital to at least $2 billion.
Founded in 2021, Cyera has benefited as enterprises turn to its platform to protect their data from attackers weaponizing AI. When it announced its Series F, the company claimed its customers made up a fifth of the Fortune 500 and that its revenue would more than triple by 2025.
In recent months, the company has used the capital to cover operating losses and acquire other cybersecurity startups, including Index Ventures-backed Ryft and Genie Security, which was founded less than a year ago.
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