Cybereason valuation dropped by over 90% in recent funding round
The cybersecurity company received a $100 million investment from SoftBank Corp. earlier this month at a valuation of $300-400 million compared to the roughly $3 billion at which it was valued when it raised $275 million in 2021
Cybereason announced earlier this month that it received a $100 million investment from SoftBank Corp. In addition, the company also announced that Eric Gan will serve as the company’s new CEO, replacing co-founder Lior Div, who will transition to the role of advisor. At the time, it was believed that the new investment by the Japanese conglomerate was made at a similar valuation to the company’s previous funding round. Cybereason was valued at roughly $3 billion when it raised $275 million in 2021.
However, according to a Delaware stock authorization form first noticed by Nasdaq Private Market and reported by Axios, the new Series G shares were sold at a price more than a 90% lower than the round in 2021, meaning the company is now being valued at between $300-400 million.
"It is no secret that the public and private markets are in a continuous downward trend. The company examined many alternatives, and in the end our commitment is to our employees and investors to ensure the full functioning of the company and its future,” said new CEO Eric Gan. “The combination of several factors, including the completed funding round, together with the appointment of new management and the focus on the innovation of our product, places the company at the beginning of a long-term process to maximize the potential. At this stage, the shareholders also agreed that the valuation is not really relevant, in light of the focus on promoting Cyberereason. The company completed a real funding round, in accordance with its goals, and raised no more than it believes it needs, thus limiting the dilution of its value."
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Last October, Cybereason laid off 200 employees, accounting for 17% of its workforce. That was the second round of layoffs at the company, which sacked around 100 employees in June. Cybereason is active in over 50 countries across the world, employing a total of 1,500 people prior to the crisis.
Div told Calcalist earlier this month that the company registered excellent results in the last quarter and met all of its sales goals. Div explained that he decided to step down as CEO as the role has become more operational than entrepreneurial and he preferred to move on and make room for someone with expertise in managing companies of such size.
