Introduction
Tel Aviv-based startup Cato Networks has announced a significant funding round, raising $238 million in equity investment. This valuation sets the company’s worth at over $3 billion. The round was led by LightSpeed Venture Partners and included participation from Adams Street Partners, SoftBank Vision Fund 2, Sixty Degree Capital, and Singtel Innov8.
Cato’s Plan for Future Growth
Cato’s founder and CEO, Shlomo Kramer, discussed the company’s plans for future growth in an email interview with TechCrunch. He stated that the new funds would be used to scale the organization in three key areas:
Delivering Cato’s Vision and Customer Success to a Broader Audience
Kramer emphasized the importance of expanding Cato’s reach, enabling more businesses to benefit from its cloud-based mesh network.
Expanding the Partner Ecosystem Offering
Cato aims to enhance its partner ecosystem by offering new features and services that will attract a wider range of customers.
Growing the Engineering and Product Team
The company plans to expand its engineering and product team, driving innovation and development of new capabilities within Cato’s platform.
Shlomo Kramer’s Vision for Cato Networks
Shlomo Kramer, a serial entrepreneur with experience in launching Check Point and Imperva, co-founded Cato in 2015. His vision was to create a platform that would simplify network security by combining software-defined networking (SDN), managed cybersecurity, and global backbone services.
Cato’s Product: A Cloud-Based Mesh Network
Cato’s product is centered around a cloud-based mesh network that allows businesses to connect to their network resources from anywhere. The company offers advanced features such as SD-WAN, security, and performance optimization.
Benefits of Cato’s Solution
- Simplified network security through a single platform
- Enhanced flexibility with scalable architecture
- Improved performance with optimized traffic management
Future Plans for Cato Networks
The funding round will enable Cato to expand its operations, growing from 800 employees to over 900 by the end of the year. The company plans to continue developing innovative solutions to meet the changing needs of businesses in a rapidly evolving technology landscape.
Quotes from Shlomo Kramer
"We’ve adapted to the changing landscape and have experienced growth. Our financial position and growth strategy allow us to weather potential headwinds effectively, including any broader tech industry slowdown."
Cato Networks’ Funding Round: Key Takeaways
- Funding Amount: $238 million in equity investment
- Valuation: Over $3 billion
- Lead Investor: LightSpeed Venture Partners
- Participating Investors: Adams Street Partners, SoftBank Vision Fund 2, Sixty Degree Capital, and Singtel Innov8