Genie Security, a startup just five months old with only five employees, has been acquired for an estimated $50 million, Calcalist has learned. The buyer is cybersecurity company Cyera, valued at $9 billion in its latest funding round and currently on an aggressive acquisition spree that now includes five companies.
Only last month, Cyera announced its fourth acquisition, the startup RYFT, also relatively new, founded in 2024 and employing just 15 people, for about $100 million. Following a series of acquisitions that also included Trail Security for $162 million, Otterize and Shape AI, Cyera has tripled the scale of its operations to 1,500 employees across 15 countries.
The acquired company, which resembles BASE44 that was sold to Wix for $80 million, develops data protection solutions for endpoint devices. Genie had operated under the radar until now, raising only $3 million in a seed round led by Mensch Capital and Dynamic Loop. Among its angel investors is Assaf Rappaport, CEO and cofounder of Wiz, which was sold to Google for $32 billion, along with senior executives from leading US cybersecurity companies including Okta and Elastic.
This is a fast and highly profitable exit both for the small group of employees and for Genie’s founders, Nadav Noy, 30, who serves as CEO, and Noam Dotan, 31, the CTO. Like most companies acquired by Cyera so far, Noy is a veteran of Unit 8200 where he served for years and led projects that received the Israel Defense Prize. Dotan is a graduate of Matzov and was part of the founding team of cybersecurity company Legit Security, where he met Noy. The two founded Genie after extended reserve duty in their units following October 7.
Genie already has a deployed product installed on hundreds of endpoint devices in organizations in Israel and the United States. The company developed an agent installed on enterprise endpoints that identifies real-time attempts at data leakage, whether caused by human action or through the use of AI tools such as Claude and others.
Following the acquisition, the team including the founders will join Cyera’s data loss prevention group and focus on expanding endpoint data security capabilities. Genie’s technology will be integrated into Cyera’s existing platform, which is currently deployed in 20% of Fortune 500 companies, deepening its use of AI.
The acquisition comes amid a major shift in how data flows within organizations. As employees increasingly use generative AI tools as part of their daily workflow, a gap is emerging between the pace of innovation and organizations’ ability to control and monitor the movement of sensitive data. In many cases, routine actions such as entering information into AI tools can lead to data leaks without the organization being aware.