Network Cato secures $359 million in funding, pushing its valuation above $4.8 billion.
In a significant move, Cato Networks has secured $359 million in its Series G funding round, placing the network security company at the forefront of the next wave of innovation in the booming Secure Access Service Edge (SASE) market.
The SASE market is currently experiencing robust growth, with global revenue reaching $2.6 billion in the first quarter of 2025, marking a 17% year-over-year increase. According to Dell’Oro Group, the market is projected to grow at a compound annual growth rate (CAGR) of 24.7%, reaching an estimated $23.8 billion by 2034.
The expansion is fueled by increasing cloud service adoption, hybrid work models, and demand for integrated security and networking solutions. Enterprises are prioritizing single-vendor SASE solutions, which grew 21% year-over-year, significantly outpacing multi-vendor solutions. North America leads the market, driven by early technology adoption and a strong cybersecurity provider presence, while the Asia-Pacific region is also emerging as a high-growth area due to rapid digital transformation.
Cato Networks, with more than 3,500 enterprise customers, is acknowledged as an innovative provider in this space. The company delivers a single, cloud-native platform that scales with the enterprise and dynamically adapts to constant change, differentiating it from legacy vendors.
Recently, Cato reported 46% year-over-year (YoY) growth in annual recurring revenue (ARR) for 2024, significantly outpacing the SASE market. The funding round, led by Vitruvian Partners and ION Crossover Partners, will enable Cato to expand its AI capabilities, allowing enterprises to securely adopt AI across their businesses.
The funds will also be used to increase investment in research and development (R&D) to expand capabilities across DEM, LAN Security, IoT/OT Security, SD-WAN, SSE, XDR, and ZTNA. Cato aims to grow its partner ecosystem and customer-facing teams to meet global demand.
The investment brings Cato's valuation to more than $4.8 billion. Existing investors like Lightspeed Venture Partners, Acrew Capital, and Adams Street Partners also participated in the funding round.
The trajectory of Cato Networks in the SASE market reflects leadership in a category undergoing rapid expansion. Cato's SASE platform differentiates it from legacy vendors that offer point solutions.
Gartner projects the SASE market will grow at a CAGR of 26%, reaching $28.5 billion by 2028. Cato's cloud-native architecture and global coverage position the company well to capitalise on this growth.
Shlomo Kramer, co-founder and CEO of Cato Networks, said, "We are thrilled to have the support of our existing investors and new partners as we continue to transform the way enterprises approach network security and SD-WAN. Our vision is to make secure, global, and adaptable network connectivity a reality for businesses of all sizes."
[1] Dell'Oro Group, "Secure Access Service Edge (SASE) Quarterly Report," Q1 2025 [2] OG Analysis, "Secure Access Service Edge (SASE) Market Analysis and Forecast, 2021-2034" [3] Dell'Oro Group, "Secure Access Service Edge (SASE) 5-Year Forecast, 2021-2025"
ffnews.com may report on the significant growth of the SASE market, with Cato Networks, a leader in the industry, securing $359 million in its Series G funding round. The finance from this investment will be used to enhance AI capabilities, expand research and development (R&D) efforts, and grow the partner ecosystem, aligning with Cato's goal of capitalizing on the projected 26% compound annual growth rate (CAGR) of the SASE market as stated by Gartner.
