Cyera is a cybersecurity unicorn company founded in Israel and headquartered in the United States. We use artificial intelligence to build what we call data security posture management: a complete assessment and picture of where a customer's data is created, where it's stored, and what state it is in. used — Growth slowed and business recovered last year as breaches continue to occur in a growing number of enterprises and other large organizations. Now, Cyera is taking the next step in its expansion with its first acquisition and major financing on the horizon.
The startup will acquire Trail Security, a startup that was in stealth mode building solutions for data loss prevention. The startup is essentially a technology that complements posture management to protect data in the event of a breach. Cyera CEO and co-founder Yotam Segev told TechCrunch in an interview that Cyera is paying $162 million for Trail in a combination of cash and stock.
Cyera has built an impressive list of clients across key industries such as healthcare, communications and financial services (it is an investor in AT&T, among others, though it won't reveal its name), and revenues are rolling in. . Also, there's still some money coming in. Bank from previous financing. Most recently, Cyera raised a $300 million Series C in April 2024 at a valuation of $1.4 billion.
But soon it will become even more. We also confirmed with people close to the matter that Cyera is in the process of raising at least $200 million at a pre-money valuation of about $3 billion. Sierra declined to comment on the funding.
The agreement sees Cyera enhance its offerings to meet customer demands to address long-term post-attitude management engagement processes, offering a more complete suite of services compared to other companies in the space. is also helpful. Cyera's competitors include CrowdStrike, Zscaler, Rubrik, Wiz, Palo Alto Networks, and Fortinet.
Trail is a relatively young company. The company is only a year old and still operating in stealth mode, as evidenced by its sparse website and the fact that CEO and co-founder Zohar Wittenberg hasn't even had a chance to set it up. It has been. Make your company “LinkedIn official.” But in fact, Segev said it has already quietly raised $35 million in funding, including Series A from Lightspeed, CRV and Cyberstarts. Cyberstarts is an early stage backer that has invested in a whole wave of leading Israeli cybersecurity companies, including: Wiz and Saiera.
Why did they throw in the towel so quickly when they had momentum? Wittenberg said there are two main reasons for this.
First, let's look at the state of the security market. Buyers now prefer platform plays that offer “all-in-one” products over point solutions.
“We think we are building the best product in the category, but we think customers want to buy data loss protection and data security posture management as a single platform,” Wittenberg said. I mentioned it in an interview. “We can leverage the DSPM side and build it better.”
Second, Segev and Wittenberg have known each other for years since their school days, so it felt like an easy choice for both parties in terms of cultural fit.
Cyera's future focus will be on continuing to enhance its technology. While AI may be the method of choice for startups themselves to collect and protect data, it is also the weapon of choice that many malicious hackers use to find innovative ways. Segev told TechCrunch that the company plans to make more acquisitions in the future to meet growing demand from customers.
“Several times a month, I get a subtle phone call from a CISO asking for some time,” Segev told me in April. “'Something's going on,' they say. 'I need you. How fast can you scan my environment? It happens every time. What we do is we jump on it. We send out squads to investigate what data is in scope. Sometimes we don't even know what data has been compromised.”
Trail has 40 employees, all of whom join Cyera.