Blackstone-Backed Funding Round Boosts R&D and Partnerships to Tackle AI Security Challenges
A data security startup, founded by a former leader of Israeli Military Intelligence, has secured $400 million to confront security vulnerabilities arising from the rise of agentic AI technologies. The funding was part of a Series F round led by Blackstone, and will assist New York-based Cyera in transitioning from its original focus on data discovery and protection to becoming a pivotal player in managing AI interactions with sensitive data.
According to Chief Strategy Officer Jason Clark, existing security models—centered around user authentication and static permissions—are ill-suited for autonomous AI agents that operate with intent and adaptability. He noted, “This situation presents one of the significant security gaps and business opportunities in dealing with AI and agentic technology.”
Founded in 2021, Cyera now employs over 1,100 individuals and has raised more than $1.7 billion. The latest funding round has pushed the company’s valuation to $9 billion—an increase of 50% from its previous $6 billion valuation following a $540 million Series E round concluded just seven months prior. CEO Yotam Segev, who previously led cyber operations for Unit 8200 in the Israeli military, has positioned Cyera uniquely within the data security landscape.
Challenges of Traditional Security Frameworks in an AI Context
The newly acquired capital will fuel product innovation, particularly in the burgeoning realm of AI security. Clark emphasized that it will fortify Cyera’s competitive advantage, making it increasingly challenging for new entrants or legacy companies to attain parity without significant investment. He highlighted Blackstone’s reputation and connections as catalysts in Cyera’s strategic growth.
Traditional security frameworks, primarily built around predictable behavior and static structures, are inadequate for managing AI agents that can adapt and evolve in their operations. Clark pointed out the necessity for robust security models that track behaviors, identify deviations from intended functions, and ensure AI agents operate within their designated boundaries.
As Cyera aims to construct a modern control plane for AI and data governance, it will require expertise in data science and cybersecurity to navigate the unique threats posed by agentic AI. Clark articulated the critical need to manage data access responsibly, questioning, “Should these agents have unrestricted access to everything you do?”
Addressing AI Security Risks
Clark identified AI risk fundamentally as an access issue—understanding who is accessing data, why, and under what conditions. Cyera intends to integrate behavioral analysis with identity management and data protocols to form a robust framework for anomaly detection and purpose-driven access control.
With ambitions to function as a neutral control framework compatible across various platforms and AI models, Cyera seeks to provide visibility and governance unattainable by current legacy vendors. The company plans deep collaborations with partners like Microsoft and AWS to enhance its capabilities and fulfill its vision of universal applicability.
Looking ahead, Cyera anticipates tripling its revenue within the next year, targeting $1 billion, followed by a longer-term goal of $3 billion. The firm aims to extend its market presence across various sectors, with Europe expected to contribute at least 25% of its revenue in the near future. A key strategy involves encouraging clients to adopt multiple products from its suite to solidify its platform status within the cybersecurity landscape.
