Cyera is eyeing a $12B valuation at an 80x ARR multiple despite operating losses

Data storage security company Cyera is finalizing a round led by Evolution Equity Partners worth 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, though 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 is still far from turning a profit. The deal values ​​Cyera at 80 times its annualized rate of return (ARR), a higher multiple than investors allocate to many fast-growing AI startups.

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

Saira’s spokesman said, “The numbers mentioned are factually inaccurate and highly inaccurate.” Evolution Equity Partners did not respond to a request for comment.

The new round is expected to come just five months after Cyera announced it had raised a $400 million Series F simultaneously. $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 to at least $2 billion.

Cyera, founded in 2021, has benefited from companies turning to its platform to protect their data from attackers who weaponize artificial intelligence. When it announced the Series F, the company claimed that its customers made up one-fifth of the Fortune 500, and that its revenues would more than triple in 2025.

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