Blackstone Leads $400 Million Funding Round in Cyera at $9 Billion Valuation

Blackstone is reportedly leading a $400 million investment in Cyera, an Israeli data security startup, in a deal that values the company at approximately $9 billion. According to a report by the Wall Street Journal, the funding round includes participation from existing investors, signaling continued confidence in Cyera’s rapid growth and technology. While the report cited people familiar with the matter, neither Blackstone nor Cyera immediately responded to requests for comment, and Reuters has not independently verified the details.

Founded in 2021, Cyera has quickly emerged as a major player in the data security market with its artificial intelligence-powered platform. The company focuses on helping organizations discover, classify, and protect sensitive data across complex cloud environments. Its technology has gained traction as enterprises increasingly adopt AI and cloud-based systems, which has heightened concerns around data breaches, cyberattacks, and regulatory compliance.

Cyera is already backed by prominent venture capital firms, including Sequoia Capital and Accel. Earlier this year, in June, the startup raised $540 million in a funding round that doubled its valuation to $6 billion. If confirmed, the new investment would mark another significant jump in valuation within a short time frame, underscoring strong investor appetite for AI-driven cybersecurity solutions.

The growing demand for data security tools is closely tied to the rapid expansion of artificial intelligence across industries. As companies deploy AI systems at scale, they are investing more heavily in safeguarding sensitive information from hacks and misuse. This trend has benefited firms like Cyera that offer advanced, AI-based data protection capabilities.

In June, Cyera reported that its customer base among Fortune 500 companies grew by 353% over the past 18 months. During the same period, the company expanded operations to 10 countries and more than doubled its workforce to nearly 800 employees worldwide. Cyera also disclosed that it has raised a total of $1.3 billion to date, with its valuation increasing twelvefold in a relatively short span, highlighting its position as one of the fastest-growing startups in the global data security and AI landscape.