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

Cyera, a company specializing in data storage security, is on the verge of closing a funding round led by Evolution Equity Partners, aiming to raise at least $300 million. This investment would elevate the company's valuation to an impressive $12 billion. Reports indicate that Cyera has exceeded $150 million in annual recurring revenue (ARR); however, it continues to grapple with profitability. The projected valuation represents a staggering 80 times its current ARR, a multiple that surpasses that of many rapidly expanding AI startups. Insiders have revealed that Cyera is expending its funds at a faster rate than it generates revenue, with a considerable portion of its budget allocated to increasing its sales team. Notably, the company has added around 500 positions this year alone, according to data from PitchBook. Despite these ambitious growth plans, Cyera's spokesperson has claimed that the figures being circulated are significantly inaccurate. Evolution Equity Partners has not yet commented on the matter. This funding round follows closely on the heels of Cyera's previous $400 million Series F raise earlier this year, which was led by Blackstone and saw participation from key investors such as Accel, Coatue, Lightspeed, Redpoint, Sapphire, and Sequoia, among others. With this upcoming investment, Cyera's total funding will exceed $2 billion since its inception in 2021. The company has gained traction as businesses increasingly seek robust solutions to protect their data from AI-driven cyber threats. During its last funding announcement, Cyera revealed that it serves one-fifth of the Fortune 500 and that its revenue had more than tripled in 2025. In recent months, Cyera has not only been financing its operating losses but has also made strategic acquisitions, including cybersecurity startups Ryft and Genie Security, both of which align with its growth strategy.