Cybersecurity

Cybersecurity firm Cato Networks raises $359 million

Ken Metral

30 Jun 2025 — 2 min read

Credit: Cato Networks Ltd.

Israeli cybersecurity firm Cato Networks announced it has raised $359 million in a fresh funding round, boosting its valuation to over $4.8 billion. The significant investment underscores growing investor confidence in AI-driven cybersecurity solutions, as companies face an escalating wave of sophisticated digital threats.

The round was led by Vitruvian Partners and ION Crossover Partners, with participation from returning backers Lightspeed Venture Partners and Acrew Capital. This latest injection of capital brings Cato’s total funding to more than $1 billion.

Riding the AI-Cybersecurity Wave

With global cyberattacks becoming more advanced and frequent, organizations are increasingly prioritizing robust security systems. Analysts project double-digit growth in information security spending through 2028, even as other tech sectors experience a cooling-off period.

“Cybersecurity and zero-trust infrastructure remain non-negotiables in IT budgets,” said Michael Ashley Schulman, CIO at Running Point Capital. “The size of this round reflects not just Cato’s strength, but also rising expectations of IPO or acquisition activity in the space.”

Founded in 2015 by cybersecurity veterans Shlomo Kramer and Gur Shatz, Cato Networks offers a secure access service edge (SASE) platform — an integrated solution that merges networking and security into a single cloud-native system. The platform enables enterprises to prevent threats, secure data, and respond to incidents in real-time.

Fueling Growth and Global Expansion

Cato plans to use the fresh capital to enhance its AI-driven security features, double down on R&D, and grow its global presence. This includes expanding in markets where digital transformation and remote work trends have accelerated demand for secure, scalable network architecture.

The company is reportedly eyeing a potential IPO in 2025, according to earlier reports by Reuters, though no official timeline has been confirmed.

SASE Market Set for Rapid Growth

Cato is well-positioned in the booming SASE market, which Gartner estimates will surge from $7 billion in 2022 to $25 billion by 2027. The company’s enterprise clients include well-known names such as Swissport, Carlsberg, Komax, and Element Solutions.

As cybersecurity becomes a cornerstone of enterprise resilience, investor appetite for high-growth players like Cato Networks appears far from cooling — signaling a strong pipeline for exits via public markets or strategic acquisitions.

Home Depot buys GMS for $4.3 billion to target more home pros

Home Depot has announced a definitive agreement to acquire GMS Inc., a major building products distributor, for approximately $4.3 billion in cash, intensifying its push to serve professional contractors and tradespeople. The acquisition, expected to close by early 2026, will be executed through Home Depot’s SRS Distribution subsidiary,

Google signs first fusion power deal with Commonwealth Fusion Systems

Fusion power, long hailed as the holy grail of clean energy, took a decisive step closer to reality this week as Google announced a groundbreaking deal with Commonwealth Fusion Systems (CFS). In a move that signals growing corporate confidence in fusion’s future, Google will purchase half the output—200

GE Appliances shifts washer production to Kentucky in $490M move

In a landmark move that underscores a growing trend of reshoring American manufacturing, GE Appliances announced on Thursday a $490 million investment into its Louisville-based headquarters, Appliance Park. The project is set to create 800 new jobs and shift production of key laundry appliances from China to the U.S.

Google launches Doppl, an app that uses AI to virtually try on outfits

Google has announced the launch of Doppl, an experimental app designed to let users visualize how different outfits would look on their own bodies using artificial intelligence. Now available on iOS and Android devices in the U.S., Doppl brings a new, personalized layer to the concept of virtual try-ons.