source: techcrunch ai: cyera eyes $12b valuation at 80x arr multiple despite operating losses
level: business
cyera, a company that helps businesses protect their data from ai-powered attacks, is raising at least $300 million in a new funding round led by evolution equity partners. the deal would value the startup at $12 billion, according to sources. this comes just five months after a $400 million series f that valued it at $9 billion. cyera has now raised over $2 billion since its founding in 2021.
the company has passed $150 million in annual recurring revenue, but it is not profitable. sources say it is spending cash faster than it brings it in, partly on hiring sales staff. pitchbook data shows cyera added 500 jobs this year. the new round values the company at 80 times its arr, a multiple higher than many fast-growing ai startups receive. a spokesperson disputed the reported numbers, calling them inaccurate.
cyera's growth has been fueled by enterprise demand for data security as attackers use ai. when it announced its last round, the company said its customers included one-fifth of the fortune 500 and that revenue more than tripled in 2025. it has also used its capital to buy other cybersecurity startups, such as ryft and genie security. the new funding will likely support further expansion and acquisitions.
why it matters: the high valuation multiple shows investor confidence in ai-driven data security, but the operating losses highlight the risks of rapid scaling in the sector.
source: techcrunch ai: cyera eyes $12b valuation at 80x arr multiple despite operating losses