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Cyera eyes $12B valuation at 80x ARR multiple despite operating losses
Cyera, a data storage security firm, is nearing a $300 million funding round led by Evolution Equity Partners, aiming for a $12 billion valuation at an 80x ARR multiple. With over $150 million in ARR but significant operating losses, Cyera is investing in growth and hiring, while also pursuing acquisitions. Previously, it raised $400 million in a Series F round, bringing total funding to at least $2 billion.
Key points
- Cyera is in the process of raising $300 million, increasing its valuation to $12 billion.
- The valuation represents an 80x ARR multiple despite Cyera not being profitable.
- Cyera has annual recurring revenue exceeding $150 million but is spending faster than it earns.
- The company has hired around 500 new employees this year to expand its operations.
- Cyera previously raised $400 million in a Series F round at a $9 billion valuation five months ago.
- The company has over 20% of Fortune 500 companies as clients and has tripled its revenue in 2025.
- Funds are being used to cover operating losses and to acquire other startups in the cybersecurity sector.
Why it matters
- This funding trend aligns with the surge in investments in cybersecurity as enterprises increasingly focus on data protection.
- The emphasis on high ARR multiples reflects a growing investor interest in tech companies, particularly in data security and AI.
- As companies like Cyera expand hiring during economic uncertainties, they reflect a broader industry trend where tech firms seek talent to navigate challenges.
Cyera's push for a $12 billion valuation amidst significant losses underscores the high stakes in the cybersecurity market, emphasizing investor confidence in the sector's growth potential despite operational challenges.