Israeli cybersecurity frontrunner, Cato Networks, has triumphantly closed a colossal $238 million private funding round, establishing a groundbreaking valuation of $3 billion for the company. This funding round stands as one of Israel’s most significant financial injections this year and represents a major milestone for Cato Networks.
Led by LightSpeed Venture Partners, a key player in the venture capital landscape, the funding round saw enthusiastic participation from major investors including Adams Street Partners, Softbank Vision Fund 2, Sixty Degree Capital, and Singtel Innov8, underscoring the confidence in Cato’s strategic direction and market potential.
Cato Networks has outlined ambitious plans for the influx of capital, intending to expand its market reach and strengthen its engineering and product development teams. This substantial funding builds upon a history of successful financial ventures since the company’s inception in 2015, amassing a total of $773 million in funding. Notably, a prior funding round in 2021 secured $200 million, valuing the company at $2.5 billion.
CEO Shlomo Kramer, a co-founder of Cato Networks and Check Point Software Technologies, emphasized the company’s extraordinary growth trajectory, positioning Cato Networks as a formidable player in the industry. Check Point Software Technologies, with a current valuation of $16 billion, stands as a testament to Kramer’s expertise and entrepreneurial prowess.
The impressive funding injection comes amidst a challenging period for Israeli startups, experiencing a notable 70 percent decrease in funding during the first half of the year, attributed to global economic shifts and investor reservations stemming from anticipated judicial reforms in Israel.
Cato Networks, however, remains undeterred, reporting impressive financial performance for 2022, boasting an annual recurring revenue surpassing $100 million. The company’s revenue soared by an impressive 60 percent in the preceding year. Cato Networks proudly boasts a robust client base, with more than 1,800 enterprise customers, including esteemed entities like Carlsberg and TAG Heuer Porsche Formula E.
This latest funding round propels Cato Networks into an exciting phase of growth, ensuring its prominence in the cybersecurity landscape and further fortifying its position as an industry leader.
