Cyera targets $12B valuation in new funding round despite operating losses

Data security startup Cyera is finalizing a new funding round of at least $300 million that would value the company at $12 billion, according to four people with knowledge of the deal. The round is being led by Evolution Equity Partners, with additional details reported by TechCrunch and originally by Calcalist.

The valuation represents roughly 80 times Cyera’s annual recurring revenue (ARR), which has surpassed $150 million, according to three sources familiar with the company’s finances. That multiple exceeds what many fast-growing AI startups command in the current market.

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Financial realities behind the headline number

Despite the eye-popping valuation, Cyera remains far from profitable. Sources told TechCrunch the company is spending money faster than it generates revenue, with a significant portion of costs directed at hiring sales staff. According to PitchBook, Cyera has added 500 jobs so far this year.

A Cyera spokesperson said that “the numbers cited are factually and significantly inaccurate.” Evolution Equity Partners did not respond to a request for comment.

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The upcoming round comes just five months after Cyera announced a $400 million Series F at a $9 billion valuation, led by Blackstone with participation from Accel, Coatue, Lightspeed, Redpoint, Sapphire, Sequoia, Cyberstarts, and others. If completed, the new round would bring Cyera’s total capital raised to at least $2 billion.

AI tailwinds and acquisition strategy

Founded in 2021, Cyera has benefited from enterprises seeking to protect their data from attackers using AI. When it announced its Series F, the company said its customers included one-fifth of the Fortune 500 and that its revenue had more than tripled in 2025.

In recent months, Cyera has used its capital to fund operating losses and acquire other cybersecurity startups, including Index Ventures-backed Ryft and Genie Security, which was less than a year old at the time of acquisition.

The deal underscores the continued investor appetite for AI-related cybersecurity companies, even those still burning through cash. The 80x ARR multiple signals that investors are betting on future growth rather than current profitability.

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