Cyera is finalizing a funding round led by Evolution Equity Partners worth at least $300 million, pushing its valuation to $12 billion. This figure represents an 80x multiple of its annual recurring revenue, which sources place above $150 million. The company remains unprofitable despite this aggressive growth, with reports indicating it is spending capital faster than it generates income. Significant portions of these funds are directed toward hiring sales staff and acquiring smaller cybersecurity firms like Ryft and Genie Security. Cyera’s spokesperson has disputed the accuracy of the financial claims surrounding the deal, while the lead investor declined to comment. This new infusion brings the company’s total capital raised to at least $2 billion, following a previous $400 million Series F round secured just five months ago.
The valuation highlights a significant divergence between market expectations and traditional financial metrics for cybersecurity firms. Investors appear willing to accept substantial operating losses in exchange for exposure to the growing threat of AI-driven attacks on enterprise data. By securing capital at such a high multiple, Cyera aims to accelerate its sales expansion and consolidate its position among Fortune 500 clients. However, maintaining this trajectory without achieving profitability raises questions about the long-term sustainability of its business model. The strategy relies heavily on continued market enthusiasm for AI security solutions to justify the premium pricing on its stock.
- Cyera is raising $300 million at a $12 billion valuation, marking an 80x multiple of its reported ARR.
- The company faces operating losses while using capital to expand sales teams and acquire competing startups.
- Spokespersons for both Cyera and its lead investor have disputed or declined to comment on specific financial details.
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