Cybereason secures $120 million investment amid leadership shakeup and abandoned merger
The funding, led by SoftBank and Liberty Strategic Capital, comes after months of financial turmoil and a shift away from a merger with Trustwave.
Cybereason, the once high-flying cybersecurity firm backed by SoftBank, has secured a critical $120 million investment in a bid to stabilize its operations following months of internal turmoil and financial uncertainty. The investment, led by SoftBank Corp., SoftBank Vision Fund 2, and Liberty Strategic Capital, comes alongside the appointment of Manish Narula as the company's new CEO.
The funding marks a potential turning point for Cybereason, which has been embroiled in boardroom disputes, legal battles, and leadership upheavals that threatened its future. The company had been struggling to raise fresh capital after its former CEO, Eric Gan, accused key investors—including SoftBank’s Vision Fund and former U.S. Treasury Secretary Steven Mnuchin’s Liberty Strategic Capital—of blocking funding efforts to consolidate control.
A Lifeline Amid a Financial Crisis
The new investment represents a vote of confidence in Cybereason’s technology, particularly its endpoint detection and response (EDR) solutions, which help enterprises combat sophisticated cyber threats. However, it also underscores the extent to which the company has had to rely on its largest backers to stay afloat.
“We are thrilled to have key investors SoftBank Corp., SoftBank Vision Fund 2, and Liberty Strategic Capital leading this investment round,” said Narula. “This funding is a testament to the strength of our technology and the trust our partners place in Cybereason.”
Narula, previously a senior executive at SoftBank, takes the helm as Cybereason refocuses on its core cybersecurity offerings, including EDR and consulting services. Gregory Puff, the company’s chief administrative officer and general counsel, will play a key role in steering its next phase.
Abandoned Trustwave Merger and Strategic Shift
The company also confirmed it would not proceed with its planned merger with Trustwave, a U.S.-based cybersecurity firm. The deal, announced in November, was seen as a potential lifeline for Cybereason, but with the latest investment, the company has opted instead to expand its strategic partnership with Trustwave rather than complete the merger.
The decision signals a renewed emphasis on Cybereason’s independent growth strategy, though it remains unclear whether this shift will be enough to restore its standing in the industry. Once valued at $5 billion and considered a formidable challenger to CrowdStrike and SentinelOne, Cybereason’s valuation has since plunged to an estimated $300–$400 million following a series of setbacks, including multiple rounds of layoffs.
Despite securing new funding, Cybereason’s challenges are far from over. The company must navigate ongoing litigation involving its former CEO, who resigned last month after accusing its largest investors of obstructing financing efforts. The lawsuit could continue to cast a shadow over its operations.
Moreover, the broader cybersecurity industry is becoming increasingly competitive, with companies needing to demonstrate both technological innovation and financial stability to win enterprise customers. With its latest investment, Cybereason has bought itself time, but whether it can reclaim its former status remains an open question.
