“Unlocking AI’s Potential: Cyera Secures $300M at $1.5B Valuation to Tackle Data Challenges”

AI is a data problem. Now Cyera is raising up to $300M on a $1.5B valuation to secure itA cybersecurity startup called Cyera is betting that the next big challenge in enterprise data protection will be AI, and it’s raising a big round of funding as demand picks up for it. Previous to this, Cyera — pronounced “Sierra” and headquartered in San Mateo and with roots in Israel — had raised a total of $160 million with its current $500 million valuation dating from last year. Cyera, Coatue and Sequoia declined comment. A source said that AI right now is a “huge driver” for business at Cyera.

Artificial intelligence (AI) is a hot topic in the technology world, with more and more companies exploring its potential. But with this increase in interest comes a new set of challenges, most notably in the realm of data protection. One startup, Cyera, is betting that AI will be the next big issue in enterprise data security, and they are raising a substantial amount of funding to tackle it.

Cyera, a cybersecurity company headquartered in San Mateo with roots in Israel, is close to securing a round of funding worth nearly $300 million. This investment will triple the company’s valuation to a staggering $1.5 billion, according to sources close to the deal. Leading the funding round is renowned venture firm Coatue, although other investors have not yet been disclosed.

While rumors of this funding round have been circulating for some time, the amount being raised has reportedly increased by $150 million. And interestingly, this round shines a spotlight on the significant role that AI is currently playing in the technology market.

“AI is a data problem,” said a source close to Cyera. “Right now, it’s a huge driver for our business.”

But Cyera didn’t set out to address the specific issue of data exposure and misuse in AI applications. Instead, their initial focus was on providing tools for data classification, posture management, detection and response, and access governance for companies in various industries. However, as more and more organizations incorporate AI into their networks, Cyera has noticed a shift in their clients’ concerns.

Many companies are now bringing automation into their processes, which presents a new challenge for data protection. As our source explains, “It’s all about everything that enterprises need to do to get ready for AI.”

While AI is undoubtedly being used to help cybersecurity companies like Cyera fight against malicious hackers and protect data, it’s also contributing to inadvertent data breaches within organizations. For example, businesses using chatbots or generative AI applications run the risk of violating their own internal data protection policies. And this is where Cyera aims to step in.

The startup is determined to address this issue head-on, providing AI-enhanced tools that can accurately track and monitor how and where data is being used in a company’s network. Their technology is already driving tens of millions of dollars in annual recurring revenue, and this latest funding round is expected to propel Cyera’s growth even further.

Ultimately, this significant investment in Cyera highlights the increasing importance of data protection in the age of AI. As our source noted, “AI is a data problem,” and it’s crucial for companies to have the right tools and strategies in place to address it.

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Kira Kim

Kira Kim is a science journalist with a background in biology and a passion for environmental issues. She is known for her clear and concise writing, as well as her ability to bring complex scientific concepts to life for a general audience.

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