Cyera secures $300m funding at $12b valuation despite profit concerns
The $12 billion valuation represents an 80x multiple on annual recurring revenue, a premium that persists even as the company reports operating losses and rapid cash burn.
Data storage security company Cyera is finalising a funding round led by Evolution Equity Partners, raising at least $300 million and valuing the firm at $12 billion. The deal values the company at 80 times its annual recurring revenue (ARR), a multiple that exceeds those typically assigned to fast-growing artificial intelligence startups. This valuation comes despite reports that the company is spending money faster than it earns it and is currently operating at a loss.
According to sources familiar with the matter, Cyera has surpassed $150 million in ARR. The company has also expanded its workforce significantly, adding 500 jobs this year, with some costs directed towards hiring sales staff. Despite these growth metrics, the firm remains far from profitable, with capital being used to finance operating losses and fund acquisitions of other cybersecurity startups, including Index Ventures-backed Ryft and Genie Security.
The company’s spokesperson disputed the reported financial figures, stating that the numbers cited in reports are factually and significantly inaccurate. Evolution Equity Partners did not respond to requests for comment regarding the terms of the deal. The high valuation multiple highlights the intense investor appetite for data protection solutions as enterprises seek to safeguard information against AI-driven attacks.
This latest round follows a $400 million Series F raise five months ago, which was led by Blackstone and included participation from major investors such as Accel, Coatue, Lightspeed, Redpoint, Sapphire, Sequoia, and Cyberstarts. At the time of that announcement, Cyera claimed its customer base included one-fifth of the Fortune 500 and that revenue had more than tripled in 2025.
The new funding brings Cyera’s total capital raised to at least $2 billion since its founding in 2021. The rapid succession of large funding rounds underscores the strategic importance placed on data storage security within the broader technology sector, even as the company navigates the challenges of scaling operations while managing significant cash burn.
