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

Data storage security company Cyera is finalizing a new funding round of at least $300 million led by Evolution Equity Partners, according to four people with knowledge of the deal, valuing the company at approximately $12 billion. The round comes just five months after Cyera announced a $400 million Series F at a $9 billion valuation, highlighting the rapid growth and investor appetite for AI-focused cybersecurity platforms.

Financials and valuation details

Cyera has surpassed $150 million in annual recurring revenue (ARR), three people familiar with the matter told Bitcoin World, though the company remains far from profitable. The new round values Cyera at 80 times its ARR, a multiple that exceeds what many fast-growing AI startups command. Sources indicated the company is spending money faster than it earns it, with significant costs directed at hiring sales staff. According to PitchBook, Cyera has added 500 jobs so far this year.

A Cyera spokesperson said that “the numbers cited are factually and significantly inaccurate.” Evolution Equity Partners did not respond to a request for comment.

Context and market implications

Founded in 2021, Cyera has benefited from rising enterprise demand for data protection tools capable of defending against AI-powered attacks. When it announced its Series F, the company claimed its customer base included one-fifth of the Fortune 500, and that its revenue had more than tripled in 2025. In recent months, Cyera has used its capital to finance operating losses as well as acquire other cybersecurity startups, including Index Ventures-backed Ryft and Genie Security, which was less than a year old at the time of acquisition.

Why this matters for investors and the cybersecurity sector

The deal reflects a broader trend where investors are assigning premium valuations to cybersecurity companies that demonstrate rapid revenue growth, even if they are not yet profitable. The 80x ARR multiple is notably high, even by the standards of the AI boom, and suggests that Evolution Equity Partners and other backers are betting on Cyera’s long-term market position. However, the company’s operating losses and aggressive hiring raise questions about its path to profitability. The new round will bring Cyera’s total capital raised to at least $2 billion, positioning it as one of the most heavily funded startups in the data security space.

Conclusion

Cyera’s rapid valuation growth underscores the intense investor interest in AI-driven cybersecurity, but also highlights the high burn rates and competitive pressures facing companies in this space. The upcoming round, expected to close soon, will provide Cyera with additional runway to scale its sales force and pursue further acquisitions, while the company’s financial disclosures remain a point of contention with its spokesperson. For the cybersecurity industry, Cyera’s trajectory offers a case study in how venture capital is flowing into AI-native security platforms at unprecedented multiples.

FAQs

Q1: What is Cyera’s new valuation?
Cyera is targeting a $12 billion valuation in its latest funding round, up from $9 billion in its Series F announced five months ago.

Q2: How much revenue does Cyera generate?
According to sources, Cyera has surpassed $150 million in annual recurring revenue (ARR), though the company disputes the accuracy of those figures.

Q3: Why is Cyera valued at such a high multiple?
The 80x ARR multiple reflects investor confidence in Cyera’s growth trajectory and its role in protecting enterprises from AI-powered cyber threats, despite ongoing operating losses.