Cyera

Cyera Drives Q2 Cybersecurity Funding Surge With $540M Series E

July 16, 2025 - Cybersecurity funding soared to a three-year high in the first half of 2025, fueled by massive investments in AI-powered security startups. Leading the charge was Cyera, which closed a $540 million Series E round in June at a $6 billion valuation.

According to Crunchbase data, global cybersecurity and privacy-focused startups raised $9.4 billion in the first six months of 2025. Q1 funding reached $4.5 billion, with Q2 climbing higher to $4.9 billion, thanks in large part to Cyera’s record-setting round.

Cyera’s Breakthrough Round

Cyera, an AI-enabled data security platform, secured the largest financing of Q2. The Series E was led by Lightspeed Venture Partners, Georgian, and Greenoaks, propelling the New York-based company to unicorn status with a $6 billion valuation. Cyera’s “AI-powered classification engine that auto-learns over time” has been key to its growth, helping detect and mitigate complex data security threats.

Other Major Q2 Deals

Cato Networks, a Tel Aviv-based cloud security provider, raised $359 million in a Series G round at a valuation exceeding $4.8 billion, bringing its total funding to over $1 billion.

In total, at least 11 cybersecurity and privacy startups closed rounds of $100 million or more in Q2.

Exits Slow Despite Investment Boom

While funding surged, exits slowed in Q2. No venture-backed cybersecurity IPOs were recorded, and there were no large disclosed-price M&A deals. This follows a blockbuster Q1, which saw Google’s planned $32 billion acquisition of Wiz.

Notable Q2 acquisitions included:

Red Canary, acquired by Zscaler, after raising around $130 million in venture funding.

TrueWork, sold to Checkr, with prior funding of $119 million.

Protect AI, bought by Palo Alto Networks, after raising $108.5 million.

AI’s Role in Cybersecurity Growth

AI continues to drive investment in cybersecurity. Cyera’s success highlights the growing demand for intelligent security solutions capable of learning and adapting to emerging threats. As AI-focused companies attract significant capital, cybersecurity remains one of venture capital’s most promising sectors.

With the funding momentum led by Cyera and other AI-driven players, the outlook for the industry remains highly positive.

Source: https://news.crunchbase.com/cybersecurity/privacy-venture-funding-surged-q2-2025-ai-cyera-data/