Data storage security company Cyera is closing a round led by Evolution Equity Partners of at least $300 million at a $12 billion valuation, according to four people with knowledge of the deal.
Calculist was the first to report the funding deal, though TechCrunch’s sources added new details about the company and its financials.
Cyera has surpassed $150 million in annual recurring revenue (ARR), three people familiar with the matter told TechCrunch, though it is far from profitable. The deal values Cyera at 80 times its ARR, a multiple that is even higher than what investors assign to many fast-growing AI startups.
Sources told TechCrunch that the company is spending money faster than it’s making it. Some of these costs involve hiring sales staff. According to PitchBook, Cyera has added 500 jobs so far this year.
Cyera’s spokesman said “the numbers quoted are factually and significantly inaccurate”. Evolution Equity Partners did not respond to a request for comment.
The new round is expected to come just five months after Cyera announced it had raised a $400 million series 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 businesses turn to its platform to protect their data from AI-armed attackers. When it announced the F Series, the company claimed that its customers made up a fifth of the Fortune 500 and that its revenue had more than tripled by 2025.
In recent months, the company has used its capital to finance operating losses, as well as to acquire other cybersecurity startups, including Index Ventures-backed Ryft and a Genie Security less than a year old.
When you purchase through links in our articles, we may earn a small commission. This does not affect our editorial independence.
