AI security boom triples valuation of Israeli cyber startup to $9 billion within a year

https://www.timesofisrael.com/ai-security-boom-triples-valuation-of-israeli-cyber-startup-to-9-billion-within-a-year/

Publish Date: 2026-01-08 12:15:00

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Israeli-founded Cyera, a developer of an AI data security platform, announced on Thursday that it has raised $400 million in a funding round led by New York-based alternative asset manager Blackstone that triples its valuation from a year ago to $9 billion.
Other investors joining the funding round include Accel, Coatue, Cyberstarts, Georgian, Lightspeed Venture Partners, Sapphire, and Sequoia Capital.
The investment comes just six months after Cyera secured $540 million in a funding round that doubled its valuation to $6 billion, and the $300 million it raised at the end of 2024, at a $3 billion valuation. To date, the startup has nabbed more than $1.7 billion.

Cyera was founded in 2021 by Yotam Segev, CEO, and Tamar Bar-Ilan, CTO, who met during their Israeli army service, during which they built and ran the cloud security division for the Israel Defense Force’s vaunted intelligence outfit, Unit 8200.
Exposed to the challenges of securing data in the cloud, Segev and Bar-Ilan decided after their military service to develop and build a unified data security platform to provide businesses and organizations with a complete view of where their data “lives, how it’s used, and how to keep it safe.” With the fast adoption of AI applications by organizations and businesses, there is a growing need to secure their most sensitive data.

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“AI is reshaping the foundations of how every organization operates, and our mission is to ensure that this transformation happens securely,” said Segev. “Enterprises want to move quickly, but they also recognize that AI without data security and governance is a risk they cannot afford.”

ILLUSTRATIVE- Cybersecurity. (NicoElNino via iStock)

“This funding strengthens our ability to protect the world’s most sensitive information and help organizations unlock the full potential of AI with confidence,” Segev added.
Cyera’s data and AI platform is deployed by 20 percent of Fortune 500 companies operating in the areas of financial services, retail, media & entertainment, healthcare, technology, and global telecom, the firm said. Over the past 12 months, the startup tripled its workforce to 1,100 employees and expanded its footprint to 15 countries in North America, Europe, the Middle East and Asia. In Israel, Cyera has more than 400 employees.

The startup said its platform helps businesses eliminate blind spots, cut threat alert noise and protect sensitive information scattered across their cloud environments; Software as a Service, or SaaS, programs; databases; and applications, as they increasingly adopt AI tools.
“AI is fundamentally changing the enterprise risk landscape, and data has quickly become one of the fastest-growing and least understood attack surfaces,” said Blackstone Chief Security Officer Adam Fletcher. “The move toward unified data security platforms reflects how enterprises are thinking about securing sensitive information as AI adoption accelerates.”

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