Former cyber spy raises $60 million to fight AI threats

Zafran Security, a cybersecurity startup founded by an Iranian-born former spy, has successfully raised $60 million in funding, as announced by the company on Tuesday. Sanaz Yashar, who previously worked as a spy and now serves as the CEO of Zafran, shared with CNBC that this funding round is a response to the increasing frequency and severity of cyberattacks being fueled by advancements in artificial intelligence. Utilizing a blend of AI and automated technologies, Zafran aims to enhance threat management capabilities. Yashar emphasized that the landscape has become significantly more perilous compared to just a year ago. With this latest investment, Zafran's total funding has reached $130 million since its inception in 2022. While the startup did not disclose its latest valuation, it reported that its annual recurring revenue has tripled since its previous funding round, which raised $70 million in September 2024. Yashar indicated that the new capital will be primarily used for expanding the team. The funding round was led by Menlo Ventures, and included contributions from notable investors such as Sequoia Capital and Cyberstarts, the latter being an early backer of Wiz, a startup that was acquired by Google for $32 billion in March. As companies strive to enhance their cybersecurity measures in the wake of AI's evolution, there is a growing urgency to address the sophisticated tactics employed by cybercriminals. Notably, Palo Alto Networks announced in July their acquisition of identity security provider CyberArk for $25 billion. Zafran was born out of a response to a ransomware attack on a hospital in Israel, which fueled Yashar's conviction that better integration among security tools could have averted the crisis. "The data was there," she noted, advocating for more cohesive communication between security measures to thwart potential threats. Having moved from Tehran to Israel at the age of 17, Yashar dedicated 15 years to an elite cybersecurity unit in the Israel Defense Forces, known as Unit 8200. She has also played crucial roles in investigations at FireEye and Mandiant, which was acquired by Google in 2022. Many leading cybersecurity firms, including Palo Alto Networks, Check Point Software, and CyberArk, have been established by alumni of Unit 8200. Currently, Zafran serves a diverse clientele spanning healthcare, financial services, insurance, technology, and Fortune 500 companies.