Another Israeli cyber company has joined the rank of unicorns, or privately-owned companies valued at more than $1 billion: Cato Networks, which announced a fifth fundraising round of $130 million, reflecting a market cap of more than $1 billion before the money.
Cato was founded in 2015 by Shlomo Kramer, one of the founders of Check Point, and Gur Shatz, one of the founders of Imperva. The fundraising round was led by the Lightspeed Venture Partners, one of the company’s senior investors. Other participants included Greylock Partners, U.S. Venture Partners, Aspect Capital, Singaporean fund Singtel’s subsidiary Innov8, and Coatue Management.
The company has raised $332 million to date. Its previous fundraising round of $77 million closed only a few months ago.
“We’re ending the year with $240 million in the bank, which enables us to increase hiring for engineering, sales and marketing roles, and to expand cooperations,” said Kramer. The company currently has 250 employees, including 170 in Israel.
Cato is a world pioneer in the field of SASE – Secure Access Service Edge – a cybersecurity technology for organizations using cloud computing.
“The field of SASE is the hottest field in IT, and CATO was build like this kind of company from the start,” states Kramer, noting that research company Gertner estimates that the industry will be worth $11 billion by 2024.
Cato saw use of its services skyrocket due to its ability to safely connect remote workers to the organizational network.
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“If in early March we supported 15,000 remote workers, that number shot up to 50,000 when the pandemic began,” says Kramer. “We protect them as if they’re in the office.”