The fresh capital would follow a blockbuster June Series E in which Cyera raised $540 million and doubled its valuation to $6 billion
Blackstone has placed itself, albeit under the radar, at the forefront of a thriving sector within the cyber-security industry. This comes as it leads a reported $400 million funding round, valuing Israeli-founded firm Cyera at a staggering price tag of $9 billion. The development, initially reported by mainstream media, is the latest indication that investors are pouring money into firms offering solutions for rising data risk amid fast-paced AI adoption.
Cyera, which originated in 2021 and is presently considered to be one of the fastest-growing companies in data protection, has developed an AI-native solution to enable organisations to detect, classify, and safeguard sensitive data residing in the cloud, cloud SaaS applications, as well as their own environments. Notably, the demand for respective technology has increased by leaps and bounds, especially when enterprises are eager to adopt generative AI yet struggle with shadow data issues.
The fresh capital would follow a blockbuster June Series E in which Cyera raised $540 million and doubled its valuation to $6 billion. That earlier round already drew the attention of major venture backers, including Sequoia, Lightspeed and Greenoaks, and helped fuel fast expansion: Reuters reports Cyera nearly doubled headcount to roughly 800 employees and posted steep growth among Fortune 500 customers metrics that, if sustained, make the company an attractive target for large institutional investors.
Blackstone’s involvement is particularly newsworthy for two reasons. First, it highlights the degree to which major alternative asset managers are allocating towards late-stage technology companies rather than buyouts and credit. Second, the presence of a major lead, in this case, Blackstone, can help establish market pricing in private markets, not to mention legitimacy post-exit, whether that is through direct sale, strategic partnership, or IPO. Reports from the Wall Street Journal and other news sources have suggested involvement from Blackstone, though both the company and Cyera have chosen not to comment at the time of publication.
For Cyera, this funding injection provides gasoline to grow its sales, product engineering investments in AI safety and data governance, and further expansion into new geographies. The company has remained clear about its intention to win enterprise customers in regulated industries where data discovery and risk remediation serve their mission-critical objectives. Investors have shown appreciation for this focus, with the company accumulating over $1.3 billion in funding in the past 18 months alone, with its valuation shooting up substantially due to the widening scope of its addressable market in data security.
The bigger market context is important. Funding for cybersecurity businesses rebounded in 2025 as venture and growth capital ploughed into companies focused on cloud security, API protections, and AI-centred tooling. Cyera’s marquee rounds are emblematic of a tranche of firms that have convinced backers they can turn data risk into a repeatable enterprise software business with healthy customer retention and expansion economics. Analysts say that investors are now more discerning, favouring companies that have strong unit economics and channel reach, but are still willing to underwrite rapid scale in the most promising names.
However, there are questions that investors and customers would want answers to. While the private market valuations are rising quickly, there is the expectation of rampant growth, and this is not only capitalized in R&D and channel investments, but the companies are also exposed to the aggressive competition of established security providers and new startups. Furthermore, with the rising global politics of data flow and regulatory challenges, Cyera and its competitors face the challenge of technological and regulatory hurdles.
