Artificial intelligence remains a significant concern, yet it also holds immense potential in the realm of cybersecurity. Today, a startup is announcing a significant round of funding, addressing both the opportunity and the challenge at hand. Cyera has developed a cutting-edge platform that utilizes artificial intelligence to assist organizations in comprehending the location and flow of data within their networks. This knowledge is crucial for implementing appropriate measures to safeguard the data, whether it be to protect against cyber threats or prevent unintentional exposure to a vast language model.
Eltrys has learned that the company successfully secured $300 million in a Series C round, resulting in a valuation of $1.4 billion.
Cyera’s fundraise is significant not only because of its size, but also because it significantly increases the company’s valuation in a relatively short period of time. This is particularly noteworthy considering the ongoing difficulties that tech startups face when it comes to securing growth rounds. It is worth mentioning that Cyera had previously raised $100 million in a Series B funding round in June 2023. Despite not revealing specific figures, the company’s impressive progress is evident in its clientele, which includes several major multinational corporations. Additionally, it demonstrates the company’s perspective on the market and its proactive approach to tackling it.
Eltrys and other sources first reported on this fundraise while it was still in the final stages. Today’s announcement validates the information we previously discovered, such as the round’s size and Coatue’s involvement as the lead investor, a newcomer to the startup’s list of backers. Additional investors in the project include Spark Capital, Georgian, and strategic supporter AT&T Ventures.
AT&T is a well-known name in this area. In March, Eltrys reported that the multinational carrier had to perform a large-scale reset of accounts following a data breach in 2019. The breach resulted in the online disclosure of personal information belonging to 7.6 million current account holders and over 65 million former account holders. Instances like this are common occurrences that prompt companies to engage with companies like Cyera, whether it be as a proactive measure or to avert potential crises.
“I receive numerous phone calls from CISOs every month, where they delicately request some of my time,” revealed Yotam Segev, the CEO of Cyera, during an interview. “I have something happening,” they say. I require your assistance. What is the speed at which your team can scan my environment? It happens on every occasion. And what we do is quickly take action. We deploy a team to analyze the relevant data and determine its scope. Sometimes, people don’t know the specific data they’ve compromised. (The breach at AT&T occurred prior to Cyera’s establishment.)
Cyera has developed a platform that thoroughly analyzes an organization’s data, including its origin, storage, and usage.
Managing the complex and diverse IT environments of modern organizations is a significant challenge. A multitude of applications, devices, clouds, and on-premises servers generate staggering amounts of data, projected to grow exponentially in the coming years. The complex web of connections and activity has become a significant challenge when it comes to auditing data.
Cyera, along with numerous other industry players like CrowdStrike, Zscaler, Wiz, Palo Alto Networks, and Fortinet, falls under the “posture management” category. Every expert in the field will unanimously emphasize the importance of maintaining proper posture. Understanding the inventory and its location is crucial for effective management and maintenance. Cyera uses AI to streamline the process, taking an innovative approach. It focuses on the future of enterprise applications and the challenges they may bring for data posture management. The next generation’s focus in today’s world revolves around one key aspect: artificial intelligence.
“AI security is currently the most significant gap for enterprises,” stated Segev, emphasizing the importance of this aspect. “They lack control over their data, which is crucial for the functioning of AI,” he remarked, highlighting the process of building and operating large language models. If you lack knowledge about your data, including its location, duplicates, and the distinction between current and outdated versions, it becomes challenging to fully utilize this technology. When considering the potential risks posed by AI to these companies, the primary concern revolves around the possibility of losing their proprietary data.
In the Israeli military, Segev and his co-founder, Tamar Bar-Ilan (CTO), gained valuable experience, exposing them to real-world situations that allowed them to test the latest technology. Investors have noticed the addition of a robust entrepreneurial layer, along with a touch of charm and salesperson flair, to those learnings.
“We will utilize this investment to further expand our range of offerings, providing customers with the data security platform they desire and deserve,” Segev stated. “They prefer a streamlined approach to bring this program to life without the need to integrate multiple products.” They prefer purchasing from a single vendor.
Sequoia, Accel, Redpoint, and Cyberstarts, who have supported Cyera in the past, also joined in the Series C funding round. This latest investment takes Cyera’s total funding to an impressive $460 million in a remarkably short span of three years. Cyera, with its headquarters in New York and origins in Israel, has certainly made significant strides in a relatively short period of time.
Despite Doug Leone stepping back from his role as an active partner at Sequoia, he continues to serve as a board member for certain companies, such as Cyera.
The co-founders here are highly skilled and comparable to any I’ve worked with in the business world. “They are clear outliers,” he stated during an interview. They foresaw the growing demand and the imminent surge of awareness that would overwhelm us. Data is highly valuable for any company.
“The customer’s responses to Cyera as a platform bring back memories of our early days at ServiceNow,” stated David Schneider, a general partner at Coatue Management. I believe that Cyera has the potential to become an integral component of data security for enterprises, especially considering the rise of AI.
