Eric Gan (left) has resigned as CEO of Cybereason due to boardroom conflicts and financial struggles.

The SoftBank-backed cybersecurity startup is facing worsening funding issues, with internal disputes obstructing financial opportunities.

Gan cited irreconcilable differences with the board, following a lawsuit against major investors, Liberty Strategic Capital and SoftBank’s Vision Fund, accusing them of blocking crucial funding.

The investors have denied these claims.

Once valued at US$5 billion in 2021, Cybereason’s worth has dropped to between US$300 million and US$400 million as of 2023. Financial troubles, workforce cuts, and IPO delays have put the company at risk of bankruptcy.

In April 2023, SoftBank provided a US$100 million lifeline, but internal disputes have continued to stall funding efforts.

Cybereason recently announced plans to merge with Trustwave, but uncertainty looms over the deal due to leadership instability.

Gan has said he will pursue legal action against Cybereason’s major investors, leaving the company’s future in question.