Sapphire Ventures and Accel lead Cyera’s $300 million Series D funding
- Agastya Jain
- Mar 24
- 6 min read
By: Luke Lewis, Damon Choy, Nikhil Mummalaneni, and Jack Kennedy
3/24/2025
Deal Overview:
Lead Investors: Sapphire Ventures and Accel
Additional Investors: Sequoia, Redpoint, Coatue, and Georgian
Target: Cyera
Sector: Technology, Media, and Telecommunications (TMT)
Subsector: Cybersecurity
Transaction Size: $300 million
Transaction Structure: Series D Round
Target Valuation: ~$3 billion
Closed Date: November 20, 2024
Firm Overview:
Sapphire Ventures (Investor): Founded in 2011, Sapphire Ventures is a global venture capital firm focused on scaling early- and growth-stage enterprise software companies. With over $10 billion in assets under management, Sapphire has backed some of the most influential names in B2B tech, including Box, LinkedIn, Sumo Logic, and Outreach.
The firm is known for its hands-on support model, leveraging a dedicated portfolio growth team and extensive enterprise network to help founders accelerate their go-to-market strategies and scale operations. Further differentiating this firm is its deep enterprise focus and strategic insight into emerging technology categories. Rather than investing broadly across sectors, Sapphire specializes in identifying and supporting category leaders in cloud infrastructure, data security, AI, and vertical SaaS. The firm’s targeted, thesis-driven approach enables it to act as a true partner to entrepreneurs navigating complex enterprise markets.
Accel (Investor): Founded in 1983, Accel is a premier venture capital firm specializing in early-stage and growth investments across technology, software, cybersecurity, and consumer internet sectors. With a reputation for backing industry-defining companies, Accel has played a pivotal role in the success of Facebook, Dropbox, Slack, Atlassian, and CrowdStrike, among others.
What sets Accel apart is its global reach and early-stage focus—the firm has been instrumental in building markets from the ground up, often being the first institutional investor in companies that go on to dominate their industries. Unlike many firms that concentrate on later-stage deals, Accel prides itself on identifying category-defining startups at their inception, helping founders refine their vision and scale operations.
Accel’s network-driven approach and deep involvement with portfolio companies make it a sought-after partner for high-growth startups. With a strong focus on cloud infrastructure, AI-driven technologies, and enterprise security, the firm continues to invest in companies that drive digital transformation.
Cyera (Target): Founded in 2021, Cyera is an AI-driven data security platform designed to help organizations safeguard and manage their data in today’s intricate digital environment. By integrating advanced Data Security Posture Management (DSPM) with real-time enforcement controls, Cyera delivers a comprehensive solution that protects data assets from emerging threats.
Sector & Deal-Relevant Trends:
Market Growth for Cybersecurity Companies Focused on Cloud-Based Environments: With more than half of the world’s data now stored in the cloud and the cloud services market projected to grow at a 16.3% CAGR through 2026, the demand for cloud-focused cybersecurity solutions is expanding rapidly. Post-COVID, the rise of remote working highlighted an urgent need for cybersecurity technology that can work over a decentralized network. In addition, the surge in large-scale cyber threats targeting tech companies and even critical sectors like healthcare since 2020 has made robust security measures more crucial than ever.
As cloud usage continues to grow and data breaches become more frequent, it is clear that cloud-based cyber solutions are poised for long-term growth. This growing need is why major venture funds are pursuing large investments in this quickly evolving industry. Companies like Cyera, with their Data Security Posture Management (DSPM) solutions, are leading the charge by helping businesses gain full visibility into their data, even the data they didn’t know existed, and protect it across decentralized cloud environments.
Venture Capital Investors Targeting AI-Adjacent Technologies: In Q4 of FY 2024, AI companies accounted for over 60% of all venture capital investments. It is clear that venture investors are trying to hit big with the looming AI revolution–reminiscent of the Dot-Com Bubble of the early 2000s. However, this time, investors appear to have learned from past mistakes.
Rather than placing high-risk bets solely on generative AI software or quantum computing, VCs are strategically backing AI-adjacent companies. These businesses provide the infrastructure, security, and operational support AI needs to scale, rather than the AI software itself. By investing in companies that will thrive regardless of which AI companies dominate, investors are hedging their bets on the broader ecosystem rather than picking individual winners. This approach ensures they gain exposure to AI’s growth while minimizing the volatility associated with early-stage AI market leaders. This trend is why companies in cybersecurity, data management/storage, and AI training have become targets of many investors in the past year.
Venture Capital Becoming Less Tied to Business Lifecycle Stages: In recent years, venture capital has increasingly shifted its focus toward later-stage companies with established revenue streams and proven business models. While seed-stage and Series A funding are still important, the largest investments in the industry are now flowing into more developed startups. To put it in perspective, in Q4 2024, nearly 75% of all capital invested in VC was directed toward mega-round financings (deals exceeding $100mm) of later stage funding. This can largely be attributed to the technology industry becoming oversaturated. This phenomenon prevents many early stage companies from even breaking into the field as they are largely controlled by the largest tech companies like the “magnificent seven.”
As a result, the largest venture capital funds are beginning to act more as growth stage and late stage investors, taking on attributes of both private equity and venture investing. In 2024 specifically, Series A capital raised decreased by 6.7%, while Series B and Series C capital rose by 17.3% and 41.8%, respectively. Most notably, 2024 Series D funding saw a 78.8% spike, reflecting a dramatic shift toward a growth stage investment approach. To summarize, it is becoming increasingly clear that venture investors don’t care as much what stage these companies are in, only whether a partnership (and investment) could be mutually beneficial. Importantly, this transition is providing venture investors with more flexibility, allowing them to target only the best companies, while simultaneously maximizing potential growth and minimizing downside risk.
Projections, Opportunities, and Risks:
Cyera's $300M Raise Signals Confidence in AI-Powered Data Security Leader: Cyera’s $300 million Series D investment on November 20, 2024, underscores strong investor confidence in the company’s potential to lead in the rapidly expanding cybersecurity space—especially within data security and cloud protection. Since its founding in 2021, Cyera has raised a total of $760 million, attracting significant interest due to its innovative technology and market traction. Following a Series C round in early 2024, Cyera’s valuation has more than doubled to over $3 billion, fueled by strong tailwinds in the cybersecurity and AI sectors.
Cyera’s competitive advantage lies in its robust R&D capabilities, enterprise-grade flexibility, and early-mover position. It was the first to introduce an agentless platform powered by advanced AI and machine learning, capable of instantly discovering and classifying data with up to 95% accuracy. The platform delivers comprehensive visibility across SaaS, PaaS, IaaS environments, and on-premises systems. It also enables fully automated remediation, seamlessly integrated into workflows and tools, with contextual recommendations that enhance both response speed and risk reduction.
Looking ahead, Cyera is well-positioned for significant revenue growth as organizations increasingly prioritize data security in the face of rising cyber threats and tightening regulatory demands. The fresh funding will allow Cyera to accelerate product development, expand its global customer footprint, and compete more aggressively with key players like Wiz and Palo Alto Networks. Strategic opportunities include scaling its AI-driven security platform, entering new markets, and forming partnerships to drive adoption across Fortune 500 enterprises.
The broader demand for cloud-native security solutions presents a favorable long-term outlook, bolstered by industry consolidation that could offer compelling exit opportunities. Still, challenges remain—such as stiff competition from well-capitalized peers, potential economic slowdowns affecting IT spending, and the need to continually differentiate in a crowded landscape. Ultimately, the success of this investment will hinge on Cyera’s ability to execute its vision, maintain a technological edge, and translate enterprise interest into durable customer relationships coupled with long-term contracts.
"We are excited to have the continued support of our investors as we push the boundaries of innovation and scale the world’s leading AI-driven data security platform. Data security has become the top priority for businesses as they navigate the complexities of a rapidly evolving data landscape shaped by the rise of AI. This funding enables us to continue accelerating platform development, attracting world-class talent in R&D, sales, and marketing, and strategically acquiring solutions that align with our vision for the future of data security."
- Yotam Segev, Co-Founder and CEO, Cyera
The bottom line...
The $300M Series D investment underscores the firms’ shared vision of revolutionized data/cloud security. Cyera, a newcomer in the space, has quickly emerged as a major player and is applying pressure on cybersecurity giants like Palo Alto Networks and VMware. With the advent of AI, Cyera appears poised to take advantage of the ever-expanding demand for cloud storage and compute. However, as with most venture capital investments, the question is whether these venture capital firms chose the right horse in the cloud-native cybersecurity race. With previous investments from Accel, Sequoia, and Cyberstarts, Cyera is another VC darling that will be an exciting firm to keep track of.
