Cyera, a New York-based data security startup founded in 2021, is raising a new funding round that values the company at as much as $1.55 billion, three sources familiar with the matter told Business Insider.
The valuation is a significant increase from the $500 million that Cyera raised at last year in a round led by Accel, according to Pitchbook data. That round brought Cyera’s total funding to $160 million. The startup is raising $150 to $200 million in this latest round, according to multiple sources.
Details are not yet finalized and the figures involved are subject to change.
Cyera’s CEO and cofounder Yotam Segev declined to comment.
Cyera’s AI-powered platform uses large language models to help customers like LifeLabs and Mercury Financial manage and secure their vast quantities of data. It was founded in 2021 by Yotam Segev and Tamar Bar-Ilan, who originally met while serving in the Israel Defense Forces.
Douglas Leone, who stepped down as “senior steward” of Sequoia Capital in 2022, serves on Cyera’s board of directors.
Sequoia invested in Cyera’s 2022 Series A funding round that was led by Accel and valued the company at $62 million, according to Pitchbook. Other investors include Redpoint and Cyberstarts.
Cyera’s ballooning valuation is a welcome bright spot in a difficult funding environment for cybersecurity startups. In 2023, venture funding for cybersecurity startups dipped to its lowest level since 2018, according to Crunchbase data.
However, investors are hopeful the worst is over as investment activity increases across the board, and as businesses look for solutions to manage how the handle sensitive data and stay one step ahead of cybercriminals.
