#USA #Tel Aviv #Security #Cato Networks #SASE

Cato Networks Raises $359 Million in Funding

Cato Networks, a prominent player in the SASE (Secure Access Service Edge) market, recently announced the successful completion of its Series G funding round, raising an impressive $359 million. This significant investment has pushed the company’s valuation to over $4.8 billion, marking a pivotal milestone in Cato's mission to redefine enterprise security for the digital and AI-driven age.

Investment Details

This funding round attracted both new investors, such as Vitruvian Partners and ION Crossover Partners, alongside existing investors like Lightspeed Venture Partners, Acrew Capital, and Adams Street Partners. This influx of capital not only highlights Cato’s robust investment prospects but also emphasizes the heightened global interest in SASE solutions within the tech industry.

Shlomo Kramer, co-founder and CEO of Cato Networks, expressed excitement about the investment, emphasizing that Cato has demonstrated sustained hypergrowth and success against leading competitors over the past decade. With over 3,500 enterprise customers, Cato’s innovative approaches to security and network technology have set it apart in a crowded marketplace that traditionally favors fragmented legacy solutions.

The Cato Advantage

Cato Networks was at the forefront of creating SASE by merging security and networking technologies in 2015. Since then, it has broadened its impact in the industry by establishing itself as a thought leader, particularly with the emergence of the term 'SASE' in 2019. Its solutions are designed to address the modern challenges companies face - ranging from increased complexity to the pressures of maintaining robust security across varied networks.

Kramer noted that with this latest funding, Cato aims to further challenge perceptions of SASE and AI security in the industry. The investment will be utilized for expanding use cases and broadening the company’s total addressable market (TAM). The firm intends to drive advancements in AI security, enhance its platform’s capabilities in areas like DEM (Digital Experience Monitoring), LAN security, IoT/OT security, SD-WAN (Software-Defined Wide Area Networking), SSE (Security Service Edge), XDR (Extended Detection and Response), and ZTNA (Zero Trust Network Access).

Strategic Growth and Innovation

Looking ahead, Cato Networks plans to focus significantly on research and development (R&D), ensuring that its offerings remain ahead of industry trends and customer needs. This boost in innovation is also reflected in the company’s strategic move to aggregate all its capabilities into a seamless, cloud-native platform, designed for modern digital business needs.

With the industry moving towards a cloud-first paradigm, Cato’s approach of integrating security into network infrastructure is increasingly becoming essential. The firm’s intuitive, AI-driven SASE platform aims to not only reduce IT operational complexity but also foster real agility for businesses navigating the digital landscape.

Cato's diligent efforts have not gone unnoticed, with Gartner predicting that the SASE market will grow to $28.5 billion by 2028, at a CAGR of 26%. Cato itself reported a remarkable 46% year-on-year growth in Annual Recurring Revenue (ARR) for 2024.

Conclusion

In conclusion, Cato Networks is poised for significant future growth as it scales its innovative solutions that redefine enterprise security and networking in a rapidly evolving digital ecosystem. With a strong foundation of investor confidence, a commitment to technological advancement, and a strategic vision for future growth, Cato Networks stands as a benchmark for other companies in the SASE space. To learn more about how Cato is changing the landscape of enterprise security, visit Cato Networks.