Both cybersecurity funding and venture dollars to Israeli startups are down, but that doesn鈥檛 mean they have dried up.
Tel Aviv-based locked up a $238 million round led by at a valuation of more than $3 billion. The new valuation is an uptick from the $2.5 billion the company was valued at after its $200 million round, also led by Lightspeed, in 2021.
Other investors in the round included , 2, and . Cato has now raised $773 million, according to the company.
Cato Networks offers customers a secure access service edge, or SASE, platform. Those platforms help deliver networking and security from the cloud to a company鈥檚 network edge, avoiding potential bottlenecks in the datacenter.
With more companies moving operations to the cloud and toward edge computing, such security is seen as more vital. Large companies like and offer such platforms, as do startups like Santa Clara, California-based networking and cybersecurity firm . Versa closed what the company called a 鈥減re-IPO round鈥 of $120 million nearly a year ago.
Funding to Israeli startups
Israeli startups have witnessed a titanic drop in funding this year. In the second quarter, startups in the country saw a 67% year-to-year drop in funding, falling from $2.7 billion in Q2 last year to less than $900 million in Q2 this year, according to SA国际传媒 .
Israel-based cybersecurity funding, in particular, has been a catalyst for that drop, with Q2 cybersecurity startup funding in the country dropping 87%, per SA国际传媒 .
While funding is down nearly everywhere this year, Israel has its own set of issues when it comes to venture and its startup ecosystem as the country faces significant political upheaval that seems to have made investors wary.
The Cato raise is the second largest in the country this year, behind only trading platform 鈥檚 $250 million raise in March.
Related SA国际传媒 Pro queries
Further reading:
- Israel鈥檚 Startup Funding Drops As Its Famed Cyber Sector Takes A Hit
- Cyber Leak? Cybersecurity Funding Falls 63% In Q2
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