Cato Networks co-founder shuts down stealth cyber startup Cortanix after raising $21M
Gur Shatz's venture, backed by Cyberstarts and Picture Capital, folded less than two years after its founding, returning remaining capital to investors.
In an unusual move for Israel’s tightly knit cybersecurity industry, veteran entrepreneur Gur Shatz has shut down his latest startup, Cortanix, less than two years after founding it, while it was still operating in stealth.
The company had raised $21 million from two of Israel’s most influential cybersecurity investment firms: Cyberstarts, the early-stage fund led by Gili Raanan, and Picture Capital, founded by Mickey Boodaei and other entrepreneurs behind Island and Transmit Security.
According to industry sources, Cortanix has decided to return its remaining capital to investors, effectively winding down operations before ever bringing a product to market.
The company did not comment on the reasons for its closure.
Shatz’s involvement had drawn early attention given his track record. He co-founded Cato Networks in 2015 with cybersecurity pioneer Shlomo Kramer, and earlier held senior roles at Imperva, another of Kramer’s previous successes. His departure from Cato came at a moment when the company appeared to be solidifying its position as one of Israel’s most valuable private cybersecurity firms.
Cato Networks raised $359 million at a $4.8 billion valuation in June, later expanding the round by another $50 million from Acrew Capital. The company recently updated its annual recurring revenue, surpassing $300 million, up from $250 million earlier this year, and has now raised a total of $1.1 billion since its founding.
