Cyera eyes $12B valuation at 80x ARR multiple despite operating losses

Data storage security company Cyera is closing a round led by Evolution Equity Partners of at least $300 million at a valuation of $12 billion, according to four people with knowledge of the deal.

Calcalist was the first to report the financing deal, although TechCrunch’s sources added new details about the company and its financials.

Cyera has surpassed $150 million in annual recurring revenue (ARR), three people familiar with the matter told TechCrunch, though it remains far from profitable. The deal values ​​Cyera at 80 times ARR, a multiple that is even higher than investors assign to many fast-growing AI startups.

Sources told TechCrunch that the company is spending money faster than it is making it. Part of these costs are intended for hiring sales staff. According to PitchBook, Cyera has added 500 jobs so far this year.

Cyera’s spokesperson said that “the figures cited are factual and significantly inaccurate.” Evolution Equity Partners did not respond to a request for comment.

The new round is expected to take place just five months after Cyera announced it had raised a $400 million Series F at a $9 billion valuation led by Blackstone with participation from existing investors including Accel, Coatue, Lightspeed, Redpoint, Sapphire, Sequoia, Cyberstarts and others. The upcoming round will bring Cyera’s total capital raised to at least $2 billion.

Founded in 2021, Cyera has benefited from companies turning to the platform to protect their data from attackers using AI as a weapon. When it announced its Series F, the company claimed that its customers represented a fifth of the Fortune 500, and that revenue would more than triple by 2025.

In recent months, the company has used its capital to fund operating losses and acquire other cybersecurity startups, including Index Ventures-backed Ryft and less than a year-old Genie Security.