Data storage security firm Cyera is finalising a fresh funding round of at least $300 million at a $12 billion valuation, according to sources close to the deal, despite running at a loss.
The investment, reportedly led by Evolution Equity Partners, was initially disclosed by Calcalist, with subsequent financial details uncovered by TechCrunch.
A Premium Multiple Amid High Burn Rates
The cybersecurity specialist has reportedly surpassed $150 million in annual recurring revenue (ARR). However, Cyera remains unprofitable, meaning the impending deal values the company at an astronomical 80 times its ARR—a premium that eclipses the multiples typically commanded by high-growth artificial intelligence startups.
Sales Expansion and Market Contradictions
Insiders indicate that Cyera’s cash burn rate currently outpaces its revenue generation, driven largely by aggressive commercial expansion. Data from PitchBook reveals that the firm has added 500 staff members to its payroll this year alone, focusing heavily on scaling its sales division.
Responding to these figures, a spokesperson for Cyera stated that “the numbers cited are factually and significantly inaccurate.” Evolution Equity Partners declined to comment on the transaction.
Rapid Valuation Growth and Strategic Acquisitions
This capital injection comes just five months after Cyera secured a $400 million Series F round at a $9 billion valuation. That previous round, led by Blackstone, saw participation from prominent venture backers including Accel, Coatue, Lightspeed, Redpoint, Sapphire, Sequoia, and Cyberstarts. The upcoming investment will push Cyera’s total funding past the $2 billion threshold.
Founded in 2021, Cyera has capitalised on enterprise demand for advanced data protection against AI-driven cyber threats. At the time of its Series F announcement, the company reported that its customer base included 20% of the Fortune 500, with revenues more than tripling over the course of 2025.
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In addition to funding ongoing operational deficits, Cyera has actively deployed its capital to acquire emerging cybersecurity startups. Recent transactions include the acquisition of Index Ventures-backed Ryft and Genie Security, a startup less than a year old.