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Cato Networks Raises $359 Million at a Valuation of More Than $4.8 Billion
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Cato Networks

Jun 30, 2025, 06:00 ET

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SASE leader fuels the future of AI-driven enterprise security and networking in an oversubscribed round

TEL AVIV, Israel, June 30, 2025 /PRNewswire/ -- Cato Networks, the SASE leader, today announced its Series G funding round, raising $359 million led by new investors including Vitruvian Partners and ION Crossover Partners as well as existing investors including Lightspeed Venture Partners, Acrew Capital, and Adams Street Partners. The investment brings Cato's valuation to more than $4.8 billion and total funding to more than $1 billion, a significant milestone in the company's mission to redefine enterprise security for the digital and AI era.

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Shlomo Kramer, CEO, Cato Networks
Shlomo Kramer, CEO, Cato Networks

The investment builds on Cato's proven track record of leadership: from the creation of SASE with the convergence of security and networking in 2015, through the recognition of Cato's vision by the global analyst community when the term "SASE" became defined in 2019, and a decade of innovation that continuously stretches the boundaries of SASE and AI security.

"With more than 3,500 enterprise customers, consistent hyper-growth, and repetitive and scalable wins against all leading competitors, Cato is a proven and mature business to invest in," said Shlomo Kramer, co-founder and CEO at Cato Networks. "Our true SASE platform and decade of AI innovation differentiates Cato from legacy vendors that favor a portfolio of point solutions. Customers and partners understand the difference and select Cato to benefit from proven security, operational efficiency, and business agility."

"Cato has spent the past decade building and optimizing the next generation of cybersecurity, and we are proud to partner with them as they continue to raise the bar for AI-driven security and networking," said Vitruvian Partners. "The company's visionary leadership, best-in-class growth and retention rates, and relentless focus on innovation and customer experience are what led us to invest in Cato. We look forward to supporting Cato's next phase of growth as they expand their market reach and transform how enterprises connect and secure their digital businesses and use of AI."

"As a longtime investor in Cato Networks, we've had a front-row seat to its incredible journey, from defining the SASE category to leading it," said Ravi Mhatre, partner and co-founder at Lightspeed Venture Partners. "Cato is reshaping enterprise security with a unified, AI-powered SASE platform that's secure, scalable, and built for the cloud-first world. They're not just eliminating IT complexity. They're unlocking real agility for the digital business. We're proud to further support Cato as they continue setting the standard for SASE leadership."

A Platform Built for Today's Digital Business

Legacy infrastructure is increasingly viewed as a liability—expensive to maintain, slow to adapt, and dangerously fragmented. Today's IT and security leaders face mounting complexity, limited staff, and overwhelming pressure to secure everywhere and enable anything. Cato was built to answer that mandate.

Cato delivers enterprise-grade security and networking as a single, cloud-native platform. Unlike a legacy patchwork of firewalls, routers, cloud proxies, and point solutions, the Cato SASE Cloud Platform is architected from the ground up to be self-maintaining and autonomously scalable for enterprises.

A Strategic Inflection Point: AI-Powered SASE Platform

With the additional funds, Cato will continue to challenge the industry's perception of SASE and AI security, expand to additional use cases, and increase the total addressable market (TAM) of the company. To do that, Cato will:

  • Advance AI Security: Expand capabilities that enable enterprises to adopt AI across the business in a secure and controlled manner.
  • Accelerate Platform Innovation: Increase investment in research and development (R&D) to expand capabilities across DEM, LAN Security, IoT/OT Security, SD-WAN, SSE, XDR, and ZTNA—all natively converged in a single, cloud-native platform.
  • Expand Global Reach: Grow Cato's partner ecosystem and customer-facing teams to meet surging global demand.

Cato's approach to AI goes beyond automation. Cato empowers IT and security professionals—CIOs, CISOs, network architects, and security analysts—to move faster, make smarter decisions, and focus on initiatives that move the business forward.

"With Cato, AI handles the noise so our customers can focus on strategy," Kramer added. "We're embedding AI into the DNA of infrastructure itself. Routine tasks are automated. Response workflows are accelerated. Risk management decisions are guided by actionable live data, not outdated reports. This isn't about tools—it's about a new operating model that is efficient, resilient, and optimized."

Supporting the True Cause of IT and Security

Cato's business momentum is driven by a growing mandate across IT and security leadership: simplify infrastructure, unify policy, and embed security and AI into the digital business. Whereas legacy vendors offer bundles of point solutions, Cato delivers a single, cloud-native platform that scales with the enterprise and dynamically adapts to constant change.

Cato's trajectory in the SASE market reflects more than just product market fit. It signals leadership in a category undergoing rapid expansion. Gartner® projects the SASE market will grow at a compound annual growth rate (CAGR) of 26%, reaching $28.5 billion by 2028. By comparison, Cato recently reported 46% year-over-year (YoY) growth in annual recurring revenue (ARR) for 2024, significantly outpacing the SASE market and reinforcing its position as the SASE leader.

Resources

  • For more information about the Cato SASE Cloud Platform, visit the product page.
  • For more information about Cato's customers and partners, visit the customer page and partner page.

Gartner Disclaimer

Gartner, Forecast Analysis: Secure Access Service Edge, Worldwide, Charanpal Bhogal, Charlie Winckless, Neil MacDonald, Andrew Lerner, John Watts, Shailendra Upadhyay, Christian Canales, Marissa Schmidt, Jonathan Forest, 5 February 2025

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

About Cato Networks

Cato Networks delivers enterprise security and networking in a single cloud platform. The SASE leader creates a seamless and elegant customer experience that effortlessly enables threat prevention, data protection, and timely incident detection and response. With Cato, organizations replace costly and rigid legacy infrastructure with an open and modular SASE architecture based on SD-WAN, a purpose-built global cloud network, and an embedded cloud-native security stack.

Want to learn why thousands of organizations secure their future with Cato? Visit us at www.catonetworks.com.

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