Cyera Nears $12 Billion Valuation with New Funding Round Despite Operational Challenges
Data storage security company Cyera is reportedly finalizing a funding round led by Evolution Equity Partners, raising at least $300 million and valuing the company at around $12 billion, according to multiple sources familiar with the deal. This funding news was initially reported by Calcalist, with TechCrunch providing additional insights into Cyera’s financials and growth trajectory.
Rapid Revenue Growth and High Valuation Multiples
Cyera has surpassed $150 million in annual recurring revenue (ARR), according to three insiders speaking to TechCrunch. Despite this impressive milestone, the company remains unprofitable and is currently spending capital faster than it generates revenue. The latest valuation places Cyera at approximately 80 times its ARR, a multiple that exceeds those typically seen in many high-growth artificial intelligence startups. This elevated valuation underscores investor optimism about Cyera’s future potential within the competitive data security market.
Part of Cyera’s expenditure is directed towards aggressive hiring, particularly in its sales division. PitchBook data indicates that the company has added around 500 new employees in 2026 alone, reflecting its push to scale operations rapidly. However, a spokesperson for Cyera contested these figures, stating that “the numbers cited are factually and significantly inaccurate.” Meanwhile, Evolution Equity Partners has not publicly commented on the matter.
Context of Recent Funding and Strategic Acquisitions
This anticipated funding round comes just five months after Cyera closed a $400 million Series F round at a $9 billion valuation. That previous round was led by Blackstone and included participation from major investors such as Accel, Coatue, Lightspeed, Redpoint, Sapphire, Sequoia, and Cyberstarts. With the new round, Cyera’s total capital raised is expected to exceed $2 billion, highlighting strong investor confidence despite ongoing operational losses.
Founded in 2021, Cyera has quickly established itself as a key player in data security, particularly as enterprises increasingly seek solutions to protect their data from sophisticated attackers leveraging AI technologies. At the time of its Series F announcement, Cyera disclosed that its customer base included one-fifth of the Fortune 500, and its revenue had more than tripled in 2025.
In addition to organic growth, Cyera has utilized its substantial capital to acquire other cybersecurity startups. Notable acquisitions include Ryft, backed by Index Ventures, and Genie Security, a relatively young company under one year old. These strategic moves aim to broaden Cyera’s technological capabilities and market reach within the cybersecurity ecosystem.
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Read more about Cyera’s latest funding and growth strategies Here.
