Cyera reportedly eyes $12B valuation in new funding round

Cyera, a data storage security company, is finalizing a funding round of at least $300 million, according to four people with knowledge of the deal. The upcoming round is reportedly led by Evolution Equity Partners and is expected to value the company at $12 billion.

The reported transaction highlights several key financial metrics for the startup:

• Funding amount: At least $300 million in the new round, which will bring Cyera’s total capital haul to at least $2 billion.
• Valuation: $12 billion, which is an increase from the $9 billion valuation from its previous funding round.
• Annual Recurring Revenue (ARR): Surpassed $150 million, according to three people familiar with the matter. ARR is a key metric for subscription-based businesses.

The deal values Cyera at 80 times its ARR. This high multiple comes even though the company remains far from profitable, according to a source. Sources also reported that Cyera is spending money faster than it makes it, with some of those costs directed at hiring sales staff. To support this expansion, Cyera has added 500 jobs so far this year, according to figures from PitchBook.

A Cyera spokesperson disputed the reports, stating that “the numbers cited are factually and significantly inaccurate.”

The potential new round is expected to come five months after Cyera announced a $400 million Series F—which is a late-stage venture capital funding round—at a $9 billion valuation. That previous round was led by Blackstone, with participation from existing investors including Accel, Coatue, Lightspeed, Redpoint, Sapphire, Sequoia, and Cyberstarts.

Founded in 2021, Cyera has benefited as enterprises seek to safeguard their data. When announcing its Series F, the company claimed its revenue more than tripled in 2025 and that its customers comprise one-fifth of the Fortune 500. In recent months, the company has used its capital to finance operating losses and to acquire other cybersecurity startups. These acquisitions include Ryft and Genie Security.

Why it matters

The deal highlights the high valuation multiples investors are willing to pay for fast-growing cybersecurity startups despite operating losses and high cash burn.