How Shlomo Kramer’s third multi-billion-dollar startup, Cato Networks, has redefined network security
For more than two decades, Shlomo Kramer has been the face of his native Israel’s thriving startup scene. Now with his most recent startup, Cato Networks , Kramer - who is often called “The Godfather of Israeli cybersecurity ” -? is on the verge of achieving a rare entrepreneurial hat trick: founding and leading three startups that turned into multi-billion dollar public companies.?
The secret to Kramer’s repeated success is a keen reading of the cybersecurity tea leaves. By 2015, “IT security became so convoluted, so expensive, and so rigid,” Kramer says, that “we came to the conclusion that it had to be simplified again.” To do so, Kramer teamed up with an Imperva colleague, Gur Shatz , and co-founded Cato. “It was an opportunity to create a generational company, and to build something very meaningful,” he says.
Within a couple of years, Cato entered the market with the first fully integrated cloud-based networking security solution – essentially creating a new IT security category that would become known as Secure Access Service Edge, or SASE. In five years, the company reached $100 million in annual recurring revenue, a milestone few if any cloud companies have achieved faster.?
Today, with a platform that protects more than 2,200 enterprise customers, a workforce of 1,000 employees across 30 countries, and valuation of more than $3 billion, Kramer’s vision for Cato’s place in the history of cybersecurity remains as clear: “We want to be remembered as the AWS of IT security.”
New Investments
Partner Seth Rosenberg led Greylock's investment in fintech startup Ramp , which announced a $150 million funding round.? Already used by tens of thousands of finance teams, the company plans to triple down on the next wave of innovation including adding AI capabilities to deliver even more value for customers.
Portfolio News
Abnormal was featured on CRN’s AI 100 list , recognized for being one of the 20 hottest AI cybersecurity companies.?
Adept was included on the 2024 Forbes' AI 50 list , which recognizes the most promising privately-held AI companies.
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Coda and Snowflake announced a partnership that offers enterprises new and easy ways to unlock value from their data assets. The first step in the partnership is bringing data to your team’s workspace with the Snowflake Pack.?
Cresta was included on the 2024 Forbes' AI 50 list , which recognizes the most promising privately-held AI companies.
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Tome was included on the 2024 Forbes' AI 50 list , which recognizes the most promising privately-held AI companies. The company is also doubling down on helping sales teams close more deals by automating creating personalized materials for every customer.?
Greylock News and Insights
In TechCrunch , Greylock partner Seth Rosenberg argues that 2024 is the year of AI applications and agents, noting that startup activity is very strong in this category. While apps and agents aren’t as capital intensive as other parts of the AI stack and therefore require less dollars raised, he believes they are one of the largest opportunities in the last decade, and the smartest builders are flocking towards building them.
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Great share, Greylock ! One insight we've noticed is the increasing importance of proactive threat hunting alongside traditional defense measures.