Zafran Security Founder Departs Amid Talks of Low-Valuation Sale to Cisco
Zafran Security, once a leading Israeli cybersecurity startup founded in 2022, is facing significant challenges despite raising $130 million in funding over three rounds. One of its co-founders, Shnir Hadela, who served as VP of Product, recently left the company to join Nvidia as Director of Engineering. This departure raises questions about the startup’s future, especially as Zafran has been reportedly seeking a buyer for several months.
Industry insiders indicate that Zafran is in advanced negotiations with Cisco, which is willing to pay between $150 million and $200 million for the company. This potential acquisition price is notably lower than Zafran’s last valuation, which was significantly above $200 million during its December 2025 funding round. Zafran’s management denies the sale rumors, stating Cisco intends to invest strategically and that a new funding round is planned.
Zafran specializes in identifying cybersecurity vulnerabilities in enterprise systems, competing in a crowded market with giants like Palo Alto Networks, CrowdStrike, Microsoft, and Cisco, as well as established players like Tenable and Qualys. Despite early rapid growth, Zafran’s revenue plateaued around $20 million last year, struggling to accelerate sales amid fierce competition and high cash burn rates. Investors are concerned about the company’s ability to scale fast enough to justify its losses.
The company’s founders, including CEO Snez Yashar, a former Israeli intelligence officer whose life inspired a character in the Israeli series "Tehran," and CTO Ben Sari, have strong reputations that helped secure top-tier investors such as Sequoia, Cyberstarts, Menlo Ventures, and NBA star Steph Curry’s fund. However, the current market environment favors startups with triple-digit growth, making Zafran’s 20% annual growth less attractive.
If the sale to Cisco proceeds, investors may only recover their capital without profit, marking a disappointing exit for a startup once hailed as a cybersecurity rising star. Zafran’s spokesperson confirmed Cisco’s strategic investment and noted that product leadership has transitioned to Itai Nahum in New York following Hadela’s departure.
