Israeli cybersecurity firm Cato Networks secures $359m series G

Cato Networks, a cybersecurity company, has raised US$359 million in its series G funding round, bringing its valuation to US$4.8 billion.

The funding announcement was made on June 30, 2025 and was led by new investors Vitruvian Partners and ION Crossover Partners, alongside existing investors including Lightspeed Venture Partners, Acrew Capital, and Adams Street Partners.

Around US$120 million of the funding will be allocated to employees through a secondary sale.

The remaining funds will support the company’s operations and growth initiatives, marking a significant increase from its previous US$3 billion valuation in September 2023.

Founded in 2015 by Shlomo Kramer and Gur Shatz, Cato Networks offers a cloud-native Secure Access Service Edge (SASE) platform designed for enterprise-grade security and connectivity.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Serial entrepreneurs drive cybersecurity innovation cycles

Shlomo Kramer’s career demonstrates how experienced founders identify gaps between existing technology and evolving threats.

Kramer co-founded Check Point in the 1990s (addressing firewall needs), then Imperva in 2002 (focusing on web applications), before launching Cato Networks in 2015 to address the limitations of MPLS and traditional firewalls1.

His ability to attract over $1 billion in funding for Cato Networks reflects how investors value seasoned entrepreneurs who have successfully navigated previous technology transitions2.

This pattern extends beyond Kramer, as cybersecurity in particular saw over 30 companies raise more than $200 million each in 2021 alone, many led by experienced founders who previously built successful security companies3.

Kramer’s description of existing technology stacks as “broken” highlights how serial entrepreneurs often position their new ventures as solutions to fundamental problems rather than incremental improvements1.

2️⃣ SASE represents a fundamental architecture shift in enterprise security

The SASE market’s projected growth from $15.52 billion in 2025 to $44.68 billion by 2030 (23.6% CAGR) indicates this is not just a product category but a structural transformation in how enterprises approach security4.

Organizations are abandoning traditional perimeter-based security models as approximately 62% now prioritize SASE implementation to secure increasingly distributed workforces and cloud resources5.