Cyera, an Israeli-founded cybersecurity unicorn based in the U.S., leverages artificial intelligence to deliver comprehensive data security posture management. This process involves assessing where a customer’s data is created, stored, and how it is used. Over the past year, Cyera has experienced rapid growth, fueled by the increasing number of data breaches affecting large organizations. To further expand, the company is making its first acquisition and preparing for a major fundraising round.
Cyera is acquiring Trail Security, a startup that has been operating in stealth mode and focused on data loss prevention, a technology that complements Cyera's existing posture management solutions. The deal, valued at $162 million, consists of both cash and stock, according to Cyera’s CEO and co-founder, Yotam Segev, in an interview with TechCrunch.
The startup has garnered a diverse clientele from sectors such as healthcare, communications, and financial services, and continues to generate revenue. Cyera has also maintained financial reserves from prior fundraising, including a $300 million Series C round in April 2024 that valued the company at $1.4 billion.
In addition, sources indicate that Cyera is in the process of securing an additional $200 million, which would increase its pre-money valuation to approximately $3 billion. The acquisition of Trail will allow Cyera to enhance its services and meet the growing demand for more comprehensive solutions beyond posture management. Among Cyera's competitors are firms like CrowdStrike, Fortinet, Palo Alto Networks, Rubrik, Wiz, and Zscaler.
Trail Security, founded only a year ago and still in stealth mode, had already raised $35 million in funding from investors such as Lightspeed, CRV, and Cyberstarts, a backer of several prominent Israeli cybersecurity firms including Cyera. Despite its early momentum, Trail’s CEO and co-founder, Zohar Wittenberg, cited two main reasons for selling the company.
First, the cybersecurity market is trending towards platform solutions rather than individual point products. Customers are looking for integrated platforms that include both data loss protection and data security posture management. Second, Wittenberg and Segev have a long-standing relationship, which made the acquisition feel like a natural fit in terms of company culture.
Looking ahead, Cyera aims to continue improving its technology to combat increasingly sophisticated cyberattacks, often driven by AI. Segev also mentioned that the company plans to make more acquisitions to meet the evolving needs of its customers. Trail's 40 employees will be integrated into Cyera as part of the acquisition.
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