For the past five years, Cato Networks has been developing a cloud-native wide area network solution designed to enable secure connectivity to network resources from any location. The shift to remote work spurred by the recent pandemic proved to be an ideal environment for this type of technology. Today, the company announced a $130 million Series E investment, resulting in a $1 billion valuation.

Lightspeed Venture Partners spearheaded the funding round, with contributions from new investor Coatue, as well as existing investors including Greylock, Aspect Ventures/Acrew Capital, Singtel Innov8, and Shlomo Kramer, the company’s co-founder and CEO. To date, Cato Networks has secured a total of $332 million in funding.

Kramer is a seasoned entrepreneur, having previously co-founded Check Point Software, which became a public company in 1996, and Imperva, which went public in 2011 and was subsequently acquired by Thoma Bravo in 2018. He initiated the launch of Cato Networks in 2015. “Back in 2015, we recognized that the wide area network (WAN) market, representing tens of billions of dollars in value, was still reliant on outdated technology designed to connect and secure physical locations, traditionally sold by telecommunications companies and managed service providers,” Kramer stated.

The vision behind Cato Networks was to reimagine this technology for a modern, mobile, and cloud-centric world, moving away from the legacy systems built for private data centers and primarily accessed from traditional office environments. Currently, the company operates a global cloud-based network comprising 60 Points of Presence (PoPs), providing customers with consistent access to both networking capabilities and network security, regardless of their location.

This strategic approach has proven successful as the world has evolved, particularly with the accelerated adoption of remote work due to the COVID-19 pandemic. The ability to securely connect from anywhere has become paramount, and Cato Networks has experienced significant growth, achieving a doubling of its Annual Recurring Revenue (ARR) this year, though specific revenue figures were not disclosed.

Given the company’s stage of development and Kramer’s prior experience with initial public offerings, a future IPO is a possibility. However, he is not yet prepared to announce a specific timeline. He emphasized that the company is currently focused on rapid growth, serving nearly 700 customers, which prompted the decision to secure this substantial round of funding.

Cato Networks currently employs 270 individuals and intends to expand its workforce to 400 by the end of the following year. The company maintains a global presence, with its headquarters located in Israel, and Kramer is committed to fostering a diverse and inclusive workplace culture across all locations.

“I believe that fostering inclusion must begin at the earliest stages of the recruitment process. I am actively involved in initiatives at the educational level to ensure we are competitive when students are seeking opportunities with startups, and our current employee base reflects this commitment to diversity,” Kramer explained.

The newly acquired funds will be allocated to continued company and product development. “There is a significant market opportunity, and we aim to capitalize on it as quickly as possible. We will also be making substantial investments in our engineering teams to further enhance our solution and deliver the next generation of capabilities,” he concluded.