Cyera Doubles Valuation to $6B with $540M AI-Driven Security Bet

Israeli cybersecurity startup Cyera just pulled off one of the biggest private funding hauls of the year, announcing a staggering $540 million raise in a late-stage round that catapults its valuation to $6 billion — doubling its worth in just seven months. The Tel Aviv-based firm, founded in 2021, is quickly becoming a heavyweight in the world of AI-powered data security, a sector experiencing explosive growth as enterprises race to adopt generative AI and foundation models.

The latest funding round was led by Georgian, Greenoaks, and Lightspeed Venture Partners, with participation from a who’s who of Silicon Valley investors including Accel, Coatue, Cyberstarts, Redpoint, Sapphire, Sequoia Capital, and Spark. It marks Cyera’s second mega-round in under a year; back in November 2024, the company raised $300 million, which at the time placed its valuation at $3 billion.

Now, as businesses scramble to harness the transformative potential of AI while grappling with the mounting risks of data exposure, Cyera is positioning itself as an essential ally. Its AI-driven data security platform enables enterprises to identify, classify, and protect sensitive data across complex cloud environments — a capability that’s fast becoming mission-critical in today’s AI-fueled economy.

“As AI adoption accelerates across industries, we keep hearing the same thing from enterprise leaders: ‘Move fast, but don’t break security,’” said Yotam Segev (pictured), Cyera’s co-founder and CEO. “Our mission has always been to make data security effortless and scalable, and today it’s the most crucial capability for organizations looking to responsibly embrace AI.”

Cyera plans to use the new capital to scale its platform and expand its capabilities, building on an already impressive growth streak. Over the past 18 months, the company has achieved 353% growth in Fortune 500 clients, expanded operations to 10 countries, and more than doubled its global workforce to nearly 800 employees. Since its founding, Cyera has now raised a total of $1.3 billion in funding and multiplied its valuation 12-fold.

The firm’s meteoric rise reflects a broader trend in the cybersecurity market, where data-centric security solutions are in high demand. With AI models increasingly being trained on vast, often sensitive, enterprise data sets, the stakes for data protection have never been higher.

According to market research firm Cybersecurity Ventures, global spending on cybersecurity products and services is expected to surpass $300 billion by 2026, with a growing slice of that going toward data protection in AI-driven environments. Investors are clearly betting big on Cyera’s AI-first approach to solving one of the industry’s most pressing challenges.

Fun fact: Cyera isn’t the only Israeli cybersecurity firm making waves lately. Israel, often dubbed the “Startup Nation,” has become a global powerhouse in cybersecurity innovation, boasting over 450 security startups and accounting for more than 10% of global cybersecurity VC investment. Cyera’s rise is just the latest chapter in this thriving ecosystem — and it’s a clear signal that AI-powered security is no longer a niche, but the next frontier in enterprise tech.

If Cyera continues on this trajectory, don’t be surprised if it’s headed for a public offering or major acquisition in the near future. In the high-stakes world of AI and data security, the race is on — and Cyera seems determined to stay ahead of the pack.