Cybereason CEO resigns amid boardroom battle over funding
Eric Gan steps down after accusing Mnuchin, SoftBank of obstructing vital financing.
Eric Gan, the chief executive officer of Cybereason, has resigned following a prolonged boardroom dispute that has left the once-promising cybersecurity startup in a precarious financial position. His departure, first revealed by Bloomberg, underscores the deepening crisis at the SoftBank-backed company, which has struggled to secure vital funding amid internal power struggles.
Gan, a longtime SoftBank executive who took the helm in 2023, cited irreconcilable differences with the board as the reason for his resignation. His exit comes after he filed a lawsuit last month against two of Cybereason’s largest investors—former U.S. Treasury Secretary Steven Mnuchin and SoftBank’s Vision Fund—accusing them of deliberately blocking critical financing efforts to protect their own stakes. The defendants have dismissed the lawsuit as baseless.
The conflict has severely hampered Cybereason’s ability to secure fresh capital. Gan alleges that the board, particularly Mnuchin’s Liberty Strategic Capital and SoftBank’s Vision Fund, obstructed multiple financing opportunities, including a $150 million capital infusion, in an effort to consolidate control. With mounting debt and a looming financial deadline, Cybereason now faces the possibility of bankruptcy unless a resolution is found soon.
Founded in 2012 by Israeli entrepreneurs Lior Div, Yonatan Striem-Amit, and Yossi Naar, Cybereason was once seen as a rising star in cybersecurity, attracting nearly $850 million in funding and positioning itself as a formidable competitor to industry leaders like CrowdStrike and SentinelOne. In 2021, the company was preparing for an IPO with a target valuation of $5 billion, but the economic downturn in 2022 derailed its plans. Three rounds of layoffs followed, reducing its workforce by more than 300 employees, and by 2023, its valuation had plummeted to an estimated $300–$400 million.
SoftBank provided a temporary lifeline with a $100 million emergency investment in April 2023, which coincided with the leadership transition from co-founder Lior Div to Gan. However, the latest financial crisis has left the company with few options, particularly as the internal dispute continues to block potential lifelines.
In November, Cybereason announced a planned merger with U.S.-based cybersecurity firm Trustwave, with both companies expected to operate independently. However, with the company’s leadership now in flux and its financial future uncertain, it remains unclear whether the merger will proceed as planned.
Gan, despite stepping down, has vowed to continue pursuing his lawsuit, setting the stage for what could be a protracted legal battle with major implications for Cybereason’s fate. Meanwhile, the cybersecurity industry watches closely as one of its former high-flyers struggles to stay afloat.
