Cato Networks in talks to raise $300M at $4.5B valuation as IPO window narrows
As IPOs stall, Shlomo Kramer’s cyber firm looks to raise $300M privately on back of strong revenue growth.
Israeli cybersecurity firm Cato Networks is in advanced discussions to raise $300 million in new funding, including $150 million in primary capital and an additional $150 million in secondary share sales, according to a report by The Information. The round, if completed, would value the company at a pre-money valuation of $4.5 billion—a significant step up from its last funding round in September 2023, which valued the company at $3 billion.
The talks come as many Israeli and global tech companies shelve their IPO plans amid renewed market volatility following Donald Trump’s announcement of sweeping tariffs. The resulting instability has led companies such as eToro, Klarna, Medline, and StubHub to delay offerings worth tens of billions of dollars. eToro, for instance, was expected to launch its investor roadshow this week, but those plans have now been suspended indefinitely.
While the IPO window appears to be closing for some, Cato Networks is pushing ahead with private fundraising on the back of impressive growth metrics. The company, a pioneer in the Secure Access Service Edge (SASE) category, announced earlier this year that it surpassed $250 million in annual recurring revenue (ARR) in 2024, representing a 46% year-over-year increase. More than 3,000 enterprises are now using its platform to secure and manage global operations—a scale that positions Cato as one of the most mature SASE players globally.
Since its founding in 2015, Cato has raised more than $770 million. It raised $238 million in a private funding round in 2023 that was led by LightSpeed Venture Partners, with participation from other investors including Adams Street Partners, SoftBank Vision Fund 2, Sixty Degree Capital and Singtel Innov8.
Shlomo Kramer, the company's co-founder and CEO, is no stranger to scaling security businesses. A founding figure behind Check Point and a key investor in Imperva and Palo Alto Networks, Kramer is one of Israel's most successful cybersecurity entrepreneurs. He has long been rumored to be eyeing a public listing for Cato, potentially joining peers like Varonis, whose CFO alum Gili Iohan now sits on Cato’s board. Another recent board appointment, Eyal Waldman—founder of Mellanox—further signals the company’s preparation for a possible IPO.
Still, with markets roiled by policy uncertainty and rising geopolitical tensions, the road to the public markets has become more fraught. For now, Cato appears content to remain private, especially as investor interest continues to climb.
