Cato Networks Raises $359 Million in Series G Funding Round
Funding brings valuation to $4.8 billion as company expands AI-powered SASE platform and global operations
Shlomo Kramer. Photo credit: Eclipse Media and Leonid Yakobov
Cato Networks has raised $359 million in a Series G funding round led by new investors Vitruvian Partners and ION Crossover Partners, along with participation from existing backers including Lightspeed Venture Partners, Acrew Capital, and Adams Street Partners. The new investment brings Cato’s total funding to over $1 billion and values the company at more than $4.8 billion.
Founded in Israel, Cato Networks offers a cloud-native Secure Access Service Edge (SASE) platform, which integrates enterprise-grade networking and security services. The company says the latest funding will support continued expansion of its AI capabilities, accelerate platform development, and grow its presence in global markets.
Founded in 2015, Cato was among the first to converge networking and security functions in a unified platform, now commonly referred to as SASE. The company reports serving over 3,500 enterprise customers and says it has maintained year-over-year growth, including a 46% increase in annual recurring revenue (ARR) in 2024.
CEO and Co-founder Shlomo Kramer said the new investment reflects the company’s maturity and ability to scale. “Our platform combines security, operational efficiency, and business agility in a single solution,” he said.
Cato plans to use the funding to expand R&D efforts across multiple areas, including digital experience monitoring (DEM), LAN and IoT/OT security, SD-WAN, secure service edge (SSE), extended detection and response (XDR), and zero trust network access (ZTNA). All components are built into Cato’s single, cloud-native platform.
The company also plans to expand its partner network and customer-facing teams to meet increased global demand. A core focus is supporting secure enterprise adoption of AI, including features that allow organizations to automate tasks, streamline risk management, and improve decision-making.
“AI is integrated directly into the infrastructure, helping teams reduce complexity and focus on strategic goals,” Kramer said. “Routine tasks are automated, and response workflows are guided by live data.”
Cato positions its offering as an alternative to legacy approaches that rely on multiple standalone security and networking products. The company aims to simplify infrastructure management and unify policy control for IT and security teams.
The SASE market is projected to grow significantly in the coming years. According to Gartner®, the market is expected to reach $28.5 billion by 2028, with a compound annual growth rate of 26%. Cato's reported growth rate suggests it is outpacing the broader market.