Cyera raises $400 million at $9 billion valuation

On Thursday, Cyera, a New York-based data security startup, announced that it has raised a $400 million Series F funding round. The investment round was led by funds managed by Blackstone, an investment firm, bringing Cyera’s valuation to $9 billion. This funding comes just six months after the company’s previous funding round, which raised $540 million and valued the company at $6 billion. The quick turnaround between these two major funding rounds reflects the high demand from investors to back the company’s growth, with its valuation increasing by $3 billion in a six-month period.

Cyera offers what it calls data security posture management. This service is designed to help companies map out where all of their sensitive data lives across cloud systems and databases. Additionally, the service tracks how employees and applications use this data, and identifies potential security vulnerabilities. By mapping out these data environments, the platform helps enterprises maintain visibility over their data assets, ensuring that sensitive information is tracked and security vulnerabilities are identified across cloud systems. This tracking helps organizations understand how their data is being utilized by both employees and applications, reducing the risk of security gaps.

The rise of artificial intelligence has driven demand for these services. As companies adopt AI, both the volume of data they handle and concerns regarding data leaks have increased. These market conditions have helped Cyera more than triple its revenue in its last year, causing investors to eagerly pile in. The company has also signed up one-fifth of the Fortune 500 companies as customers. This rapid adoption by large enterprises highlights how critical data security posture management has become for major corporations managing large-scale data operations in the age of AI. The combination of increased data volume and heightened security concerns has made Cyera’s offerings highly attractive to large-scale enterprise customers.

With the completion of the Series F round, Cyera has now raised over $1.7 billion in total funding. The round saw participation from several of the company’s existing investors, including:

• Accel
• Coatue
• Lightspeed
• Redpoint
• Sapphire
• Sequoia

These existing venture capital firms and investment groups have continued to support Cyera across its multiple funding stages, contributing to its rapid rise to a $9 billion valuation.

Why it matters

The adoption of artificial intelligence has increased both the volume of data companies manage and the risk of data leaks. This shift has made data security posture management a key focus for enterprises seeking to secure their cloud systems and databases.