Cyera Acquires Trail Security for $162M, Bolstering AI-Powered Data Security Platform

Cyera acquires Trail Security for $162M; Cyera is now raising at a $3B valuation

Cyera, the Israel-founded, U.S.-based cybersecurity unicorn that uses artificial intelligence to build what's known as data security posture management -- a full assessment and picture of where a customers' data has been created, where it is stored, and how it is used -- has been on a growth tear in the last year, picking up business as breaches have continued to emerge across a growing number of enterprises and other large organizations. Now Cyera is taking the next steps in its expansion with its first acquisition and a major fundraise on the horizon. The startup is acquiring Trail Security, a startup that was still in stealth mode building solutions for data loss prevention -- essentially technology complementary to posture management to help secure data in the event of a breach. Cyera is paying $162 million for Trail in a mix of cash and shares, Cyera's CEO and co-founder Yotam Segev told TechCrunch in an interview. Cyera has been building up an impressive list of customers across major industries like healthcare, communications and financial services (they decline to name names but notably one of their investors in AT&T), so there is revenue coming in. It also still has some money in the bank from previous fundraises. Most recently, Cyera picked up a $300 million Series C at a $1.4 billion valuation in April 2024. But soon it will soon be getting more. We have also confirmed with sources close to the matter that Cyera is in the process of raising at least $200 million at a pre-money valuation of around $3 billion. Cyera declined to comment on fundraising. The deal will help Cyera bulk up its offerings to meet demands from customers to handle the longer process that comes after posture management engagement, namely also to offer a more complete suite of services compared to others in the field. Competitors to Cyera include CrowdStrike, Zscaler, Rubrik, Wiz, Palo Alto Networks, and Fortinet. Trail is a relatively young company -- it was just one year old and still operating in stealth mode, as you can see by its sparse website and the fact that Zohar Wittenberg, the CEO and co-founder, hadn't even had a chance to make the company 'LinkedIn official.' But in fact, it had quietly already raised $35 million in funding, Segev told me, including a Series A from Lightspeed, CRV, and Cyberstarts -- the early-stage backer that's invested in a whole wave of big-name Israeli cybersecurity companies, including Wiz and Cyera. It had some momentum, so why throw in the towel so fast? Wittenberg told me it was for two main reasons. First, it's the state of the security market, where buyers are currently favouring platform plays -- with 'all in one' offerings, over point solutions. "We think we're building the best product in the category, but I think the customers wanted to buy data loss protection and data security posture management as one platform," Wittenberg said in an interview. "We can leverage the DSPM side and build it better." The second reason is that Segev and Wittenberg have known each other for years, going back to school, and it felt like an easy choice to make for both sides when it came to a culture fit. Cyera's focus going forward is going to be to continue enhancing its own technology -- AI might be the startup's own instrument of choice for gathering and protecting data, but it's also the weapon of choice a lot of malicious hackers are using to figure out innovative ways to breach networks -- but it's also going to be making more acquisitions going forward, Segev told TechCrunch, to address growing demands from customers to to more. "You have no idea how many times a month I get a phone call from a CISO asking delicately for some time," Segev told me back in April. "'I've got something going on,' they say. 'I need you. How fast can you guys scan my environment?' It happens every time. And what we do is, we jump on it. We send a squad, we have them figure out what data was in scope. They sometimes don't even know what data was breached." Trail has 40 employees and all of them are joining Cyera.

Cyera acquires Trail Security for $162M to expand AI-powered data security platform - SiliconANGLE

Data security solutions provider Cyera Ltd. revealed today that it has acquired Israeli data loss prevention company Trail Security Ltd. for $162 million. Prior to its acquisition, Trial Security was a data loss prevention company focused on artificial intelligence-driven solutions for safeguarding sensitive data across various environments, including cloud, endpoint and network systems. Trail Security's platform uses real-time monitoring and automated classification to detect, block and remediate potential data breaches, aiming to prevent unauthorized data sharing or accidental exposure. The platform also integrates machine learning models to identify user behavior anomalies, helping organizations to protect data at rest, in use and in transit, all while providing real-time insights into how data was accessed and shared. The company's solutions were tailored to help organizations meet critical compliance needs, such as those required under the European Union's General Data Protection Regulation, Health Insurance Portability and Accountability Act and the Payment Card Industry Data Security Standard, by offering a comprehensive layer of security for sensitive information. The acquisition will see Trail's advanced DLP capabilities integrated with Cyera's Data Security Posture Management platform and will elevate Cyera's ability to offer a comprehensive, unified data security solution. The integration will also enhance Cyera's strength in managing and protecting sensitive data by adding Trail's real-time monitoring and anomaly detection features, which focus on preventing data loss and unauthorized access. The combined platform will offer enterprises an all-encompassing approach to data security that addresses both infrastructure and data-level threats across cloud and on-premises environments. The integration will also allow organizations to benefit from enhanced visibility, real-time protection and automated remediation of sensitive data breaches, allowing them to manage evolving data risks and ensure compliance proactively. "The acquisition of Trail is a pivotal step in Cyera's journey to reshape the future of data security," said co-founder and Chief Executive Yotam Segev. "Cyera is determined to consolidate the siloed data security space and enable enterprises to navigate the growing data security challenges around AI and cloud." Coming into its acquisition, Trail Security had raised $35 million in venture capital funding from Lightspeed Ventures Partners, Charles River Ventures and Cyberstarts Ltd. Cyera was previously in the news in April when it raised $300 million on a $1.4 billion valuation from investors, including AT&T Ventures, Accel Partners and Sequoia Capital.