Cato Networks, a cybersecurity firm specializing in secure access service edge (SASE) solutions, has achieved a significant funding milestone, raising $359 million in a Series G round. This funding was led by new investors Vitruvian Partners and ION Crossover Partners, with participation from existing investors such as Lightspeed Venture Partners, Acrew Capital, and Adams Street Partners. The latest investment elevates Cato's valuation to over $4.8 billion and brings its total funding to more than $1 billion.

Founded to meet the increasing demand for integrated networking and security, Cato Networks offers a cloud-native platform that combines enterprise-grade security with networking capabilities. This innovative architecture replaces outdated legacy systems with a unified solution that is both self-maintaining and scalable, catering to the needs of modern enterprises.

The new funding will enable Cato to enhance its AI security capabilities, facilitating the secure adoption of AI technologies across various businesses. Additionally, the company plans to boost its research and development efforts to improve its platform in areas such as digital experience monitoring (DEM), LAN security, IoT/OT security, SD-WAN, SSE, XDR, and ZTNA. Cato also aims to expand its partner ecosystem and customer-facing teams to address the growing global demand for its services.

Cato Networks has demonstrated strong growth, reporting a 46% year-over-year increase in annual recurring revenue for 2024. This growth significantly outpaces Gartner's projected 26% compound annual growth rate (CAGR) for the SASE market, which is anticipated to reach $28.5 billion by 2028.

Vitruvian Partners expressed pride in partnering with Cato, highlighting the company's decade-long commitment to advancing cybersecurity and setting new standards for AI-driven security and networking solutions.

Cato Networks CEO Shlomo Kramer emphasized the company's robust position in the market, noting that it serves over 3,500 enterprise customers and has achieved consistent hyper-growth. He stated that Cato's true SASE platform and extensive experience in AI innovation set it apart from legacy vendors that rely on a collection of point solutions. Customers and partners recognize this distinction, choosing Cato for its proven security, operational efficiency, and business agility.

In summary, Cato Networks is poised for continued growth and innovation in the cybersecurity space, leveraging its recent funding to enhance its offerings and meet the evolving needs of enterprises in the digital age.