Cyera is reportedly closing in on a fresh funding round that would push the data security startup to a staggering $12 billion valuation, even as the company continues to post operating losses and burn cash faster than it brings it in. According to people familiar with the deal, the round is expected to total at least $300 million and be led by Evolution Equity Partners, coming only months after Cyera’s previous mega-round and underscoring how aggressively investors are still rewarding high-growth cybersecurity firms.
A new round at an eye-popping valuation
Four people with knowledge of the transaction told TechCrunch that Cyera is finalizing the financing, while Calcalist was first to report the deal. The new round would value the company at $12 billion, or about 80 times its annual recurring revenue, according to three people familiar with the matter. That multiple stands out even in a market that has tolerated extraordinary valuations for fast-growing software and AI companies.
Cyera’s spokesperson pushed back on the reporting, saying that “the numbers cited are factually and significantly inaccurate.” Evolution Equity Partners did not respond to a request for comment.
Revenue growth is fast, but losses remain
Sources told TechCrunch that Cyera has crossed $150 million in annual recurring revenue, a significant milestone for a startup founded in 2021. Even so, those same sources said the business remains far from profitable. The company is reportedly spending more than it generates, with a meaningful share of that spending going toward sales hiring and expansion.
PitchBook data cited in the report indicates that Cyera has added 500 jobs so far this year. That level of hiring suggests a company still in a heavy investment phase, even as it pursues the next round at one of the highest valuations in cybersecurity.
Five months after a $9 billion Series F
The upcoming round would arrive just five months after Cyera announced a $400 million Series F led by Blackstone at a $9 billion valuation. That financing also included participation from a long list of existing backers: Accel, Coatue, Lightspeed, Redpoint, Sapphire, Sequoia, Cyberstarts, and others.
If the new deal closes as reported, Cyera’s total capital raised would rise to at least $2 billion. That is an extraordinary sum for a company that is only four years old, reflecting both the pace of its growth and the capital intensity of scaling enterprise security software globally.
Why Cyera is attracting so much capital
Cyera has built its business around helping enterprises secure their data from attackers, including those increasingly using AI as a tool for more sophisticated threats. The company appears to have benefited from a broader surge in demand for data security and governance tools as organizations try to understand where sensitive information lives, who can access it, and how it is being used across cloud systems and applications.
At the time of its Series F, Cyera said its customers included one-fifth of the Fortune 500 and that revenue had more than tripled in 2025. Those disclosures helped frame the company as one of the breakout winners in a crowded cybersecurity market, with a strong wedge into large enterprise accounts.
Acquisitions alongside growth
The company has also been using its funding not just to support operations, but to buy other startups. In recent months, Cyera acquired Index Ventures-backed Ryft and Genie Security, a startup that was less than one year old. Those deals suggest Cyera is trying to broaden its platform and consolidate talent and technology in a market where product breadth matters.
Such acquisitions can accelerate go-to-market strategy and product development, but they also add to the complexity of scaling a business that is already spending heavily. For investors, the strategy can be attractive if it helps the company strengthen its position before competitors can catch up. For the company itself, it increases the pressure to turn growth into durable operating leverage.
An aggressive market still rewarding scale
Cyera’s reported valuation reflects a funding environment that continues to place a premium on scale, especially in categories tied to AI, enterprise infrastructure, and security. An 80x ARR multiple would be considered aggressive for almost any software business, and the fact that the figure is being discussed in the same breath as operating losses highlights how much investor attention is still centered on growth trajectory rather than profitability.
That said, the reported terms should be viewed carefully. The company itself has disputed the numbers, and the final size and valuation of the round could differ from the figures circulating now. Still, the broad outline of the story is clear: Cyera has become one of the most heavily funded companies in data security, and its next financing—if completed—would mark another dramatic jump in valuation in a very short period of time.
What the deal would signal
If Evolution Equity Partners does lead the round at the reported terms, the transaction would signal continued conviction that the market for data security remains large enough to support giant private valuations. It would also suggest that investors are willing to keep backing companies that combine strong top-line growth with a long runway to profitability, especially when those companies sit at the intersection of cybersecurity and AI.
For Cyera, the benefits of that support are obvious: more capital to hire, acquire, and expand. The risk is equally obvious: higher expectations, greater scrutiny, and a valuation that leaves less room for error if growth slows or margins fail to improve. For now, though, the company appears to have convinced backers that speed matters more than caution.
Source: Original report
Was this helpful?
Last Modified: July 7, 2026 at 9:44 pm
2 views
