Cyera acquires Trail Security for $162M; Cyera is now raising $3B

Cyera, an Israeli-founded, US-based unicorn that uses artificial intelligence to create what is known as data security posture control – a comprehensive assessment and picture of where customer data is created, stored, and how it is processed. used – has been growing exponentially over the past year, starting business as breaches continue to occur at a growing number of businesses and other large organizations. Cyera is now taking the next steps in its expansion with its first acquisition and a major fundraising imminent.

The launcher acquires Trail Security, the launcher that was in the construction solutions of private mode to prevent the loss of data – basically the technology that accompanies the management of posture to help protect the data in the event of a breach. Cyera is paying $162 million for Trail in a mix of cash and stock, Cyera CEO and founder Yotam Segev told TechCrunch in an interview.

Cyera has been building an impressive list of clients across major industries such as healthcare, telecommunications and financial services (which they declined to name but specifically one of their investors in AT&T), so there is revenue. The bank still has money from the previous fundraising. Recently, Cyera received a $300 million Series C at a value of $1.4 billion by April 2024.

But soon there will be more. We have also confirmed with sources close to the matter that Cyera is in the process of raising at least $200 million for a net worth of approximately $3 billion. Cyera declined to comment on the fundraising.

This agreement will help Cyera to pool its offerings to meet the needs of customers to handle the long process that comes after the management interaction, which is also to provide comprehensive services compared to others in the sector. Competitors to Cyera include CrowdStrike, Zscaler, Rubrik, Wiz, Palo Alto Networks, and Fortinet.

Trail is a very young company – it was only one year old and still operating in a stealthy way, as you can see from its unassuming website and the fact that Zohar Wittenberg, CEO and co-founder, had never had a chance to open it. make the company ‘LinkedIn official.’ But in fact, it had already raised $35 million in funding, Segev told me, including Series A from Lightspeed, CRV, and Cyberstarts — an early-stage backer that has invested in major Israeli cybersecurity companies, including. Wiz and Cyera.

It was intense, so why throw in the towel so soon? Wittenberg told me it was for two main reasons.

First, the state of the security market, where consumers currently prefer platform games – with ‘all-in-one’ offerings, in addition to solutions.

“We think we’re building the best product in the category, but I think customers wanted to buy data loss protection and data security management as a single platform,” Wittenberg said in an interview. “We can use the DSPM side and build it better.”

The second reason is that Segev and Wittenberg have known each other for years, going back to school, and it felt like an easy decision to make for both sides when it came to cultural equality.

Cyera’s focus going forward will be to continue to develop its technology – AI may be the first tool of choice for collecting and protecting data, but it is also the weapon of choice for many malicious hackers who are using it to find new ways to obtain information. networks that break the law — but it will also gain more going forward, Segev told TechCrunch, to address the growing demands from customers for more.

“You don’t know how many times a month I get a call from the CISO asking well for some time,” Segev said back in April. “‘Something is happening,’ they said. ‘I need you. How fast can you scan my place?’ It happens all the time. And what we do, we jump into it. We send a team, have them find out what data was in place. Sometimes they don’t even know what data has been breached.”

Trail has 40 employees and all of them are joining Cyera.