#Israel #Tel Aviv #Cato Networks #AI Security #SASE

Cato Networks Raises $359 Million in Series G Funding

Cato Networks, a leader in Secure Access Service Edge (SASE) technology, has recently announced the successful completion of its Series G funding round, raising a substantial $359 million. This investment round was primarily backed by new investors such as Vitruvian Partners and ION Crossover Partners along with continued support from existing investors like Lightspeed Venture Partners, Acrew Capital, and Adams Street Partners. Following this influx of capital, Cato Networks’ valuation has now surpassed $4.8 billion, marking a significant milestone as the company aims to transform enterprise security in the digital and AI era.

The announcement was made from Tel Aviv, Israel, emphasizing the company’s rapid growth trajectory which has been buoyed by its innovative approach to merging security with networking through its SASE framework. Cato Networks was at the forefront of defining the SASE category back in 2015 and continues to drive innovation within this space. With over 3,500 enterprise customers already relying on its services, Cato is well-positioned as a mature business in the tech landscape.

Shlomo Kramer, Cato Networks' co-founder and CEO, shared insights on the company’s impressive growth, stating, "With more than 3,500 enterprise customers, consistent hyper-growth, and repetitive and scalable wins against all leading competitors, Cato is a proven and mature business to invest in." He further emphasized that Cato's unique technology platform, designed for the cloud era, effectively addresses the limitations of legacy infrastructure that many organizations still rely on today.

The Role of AI in Cato’s Future

Looking ahead, Cato Networks intends to leverage this latest funding to further enhance its platform's capabilities, particularly employing AI-driven security solutions. This strategic focus aims to adapt to the evolving demands of modern enterprises where security and operational efficiency are paramount. The funding will not only fuel innovations in research and development but also expand Cato's global reach and customer engagement.

Cato's AI efforts encompass not only operational efficiencies but also automating routine processes that typically burden IT and security teams. According to Kramer, “With Cato, AI handles the noise so our customers can focus on strategy.” This indicates Cato's commitment to making cybersecurity infrastructure more intelligent and responsive, allowing professionals to concentrate on strategic growth rather than managing complex systems.

Expanding Market Reach

The funding will facilitate Cato's expansion into new use cases while broadening its total addressable market. This growth strategy includes strengthening its partnership ecosystem and increasing customer-facing teams, as global demand for SASE solutions continues to surge. Vitruvian Partners, a new investor, reiterated the business’s potential to reshape enterprise security through advanced AI capabilities and innovative solutions.

The Future of SASE

The SASE market is on a rapid growth trajectory, with Gartner projecting a compound annual growth rate of 26%, potentially reaching $28.5 billion by 2028. Cato Networks not only aims to keep pace with this market growth but seeks to outpace it, having recently reported a 46% year-over-year growth in annual recurring revenue for 2024. This compelling growth reaffirms Cato’s leadership position in the SASE category.

In summary, the recent funding underscores Cato Networks' pivotal role in pioneering the future of secure networking with a unified platform that integrates security and performance seamlessly. As more organizations realize the challenges of managing disparate legacy systems, Cato provides a compelling solution designed for the complexities of modern digital businesses. As the demand for such solutions grows, Cato Networks is preparing itself not just to meet these challenges but to lead the way forward in the digital security landscape.