Israeli cybersecurity company Dream Security, which was founded by former spyware company NSO Group CEO Shalev Hulio, former Austrian Chancellor Sebastian Kurz, and Gil Dolev, has raised $100 million at a company valuation of $1.1 billion.
The startup sells cyber protection systems to companies with complex or old physical infrastructures, such as gas rigs, electricity companies and nuclear reactors.
The company is also popular with state cybersecurity systems, which strive to protect national infrastructures in a centralized way. Before the current financing round, the company's valuation was $54 million, according to PitchBook.
The current financing round was led by Bain Capital Ventures, the venture capital fund founded by former US presidential candidate Mitt Romney.
The company's existing investors, Dovi Frances's Group 11, Aleph Fund, through founding partner Michael Eisenberg, James Rothschild's Tru Arrow Fund and Tau Capital, are also participating in the financing round.
As part of the financing round, Bain partner and former Symantec CEO and Mandiant chairman Enrique Salem and former Teva CEO Shlomo Yanai are joining Dream's board of directors. Salem brings experience in the cybersecurity industry and Yanai has experience in managing infrastructures.
Annual Recurring Revenue of $100 million
The company reports a backlog of orders of $130 million over the past year, so its annual revenue is estimated to be over $40 million.
In terms of annual recurring revenue (ARR), the measurement that reflects the growth of cybersecurity companies, Dream Security currently generates revenue at an annualized rate of $100 million, which is projected to double by the end of 2025, justifying the company's high valuation.
This is a significant revenue milestone for an Israeli cybersecurity company founded just two years ago, with fewer than 10 customers.
In addition to customers in Israel and Austria, the company also has customers in Europe, the Middle East and Southeast Asia. Dream Security has about 150 employees and is headquartered in Tel Aviv's Midtown office tower.
Last year, the company launched a large, original language model designed for analysts and data security managers, which can be used to identify and address cybersecurity vulnerabilities, configuration files, reports, and control systems.
The company promises that a short written command in the language engine can reflect the organizational network to analysts at client companies, and enable the identification of weaknesses and understanding of where loopholes exist in the enterprise.
Hulio said: "AI is changing the rules of the game, and Dream stands as a leading international player in the field." Frances added, "In all my years in venture capital, I have never seen a company that grows as fast as Dream, as it has demonstrated over the past year, and has such a pool of talent.
I have no doubt that Dream will grow to be one of the world's largest AI companies for cybersecurity protection of critical national infrastructures, and certainly the largest cybersecurity or AI company to ever come out of Israel."
Michael Eisenberg said, "Countries and entities entrusted with critical infrastructure are only beginning to understand the magnitude of the threat posed by cyberattacks driven by AI."