(Reuters) - Israel's Cato Networks said on Monday it had raised $359 million in a funding round, valuing the cybersecurity firm at more than $4.8 billion, as investors bet on growing demand for artificial intelligence-driven security and networking solutions.
An uptick in sophisticated cyberattacks has prompted fears of operational disruptions among companies and an increase in investor interest in AI-powered cybersecurity providers.
The funding was led by Vitruvian Partners and ION Crossover Partners, along with existing investors Lightspeed Venture Partners and Acrew Capital, among others. The latest round brings Cato's total funding to more than $1 billion.
Cato Networks plans to use the new capital to enhance its AI-driven security capabilities, increase investment in research and development and expand its global footprint.
Reuters had reported last year, citing sources, that the company was gearing up for a potential 2025 IPO.
The cybersecurity company, founded in 2015 by Shlomo Kramer and Gur Shatz, combines network services and security into a single cloud platform, known as secure access service edge (SASE).
Its SASE solution helps businesses prevent threats, protect data and quickly respond to incidents.
Customers listed on the company's website include Swissport, Carlsberg, Element Solutions and Komax.