Vega Security Secures $120M Series B to Transform Enterprise Threat Detection with Distributed AI-Native Platform

Vega Security, an AI-driven cybersecurity startup, has raised $120 million in Series B funding to revolutionize enterprise threat detection by processing security data where it resides, rather than centralizing it through legacy SIEM solutions.

Modern enterprises generate massive volumes of security telemetry, but traditional tools like Splunk require organizations to aggregate all data into centralized repositories before analysis can occur—a process that is both resource-intensive and increasingly ineffective in distributed cloud environments where data volumes are exponentially growing and information is dispersed across multiple platforms.

The funding round was led by Accel with participation from Cyberstarts, Redpoint, and CRV. This investment nearly doubles Vega's valuation to $700 million and brings total capital raised to $185 million. The company plans to deploy these resources toward advancing its AI-native security operations platform, expanding its go-to-market organization, and pursuing global market penetration.

According to Shay Sandler, co-founder and CEO of Vega Security, the traditional SIEM (Security Information and Event Management) operational model—which has dominated the sector for two decades—is not only prohibitively expensive but increasingly creates security vulnerabilities. In complex cloud architectures, centralized data aggregation often expands the attack surface and exposure to threat actors.

"Vega has defined a new operating model that enables organizations to leverage the full potential of their enterprise data to achieve incident response readiness, without all the complexity, the cost, the drama," Sandler explained. "We want to simply enable them to reach AI-native detection response capability anywhere the data is, at scale."

Leadership and Market Positioning

Sandler previously served in the Israeli military's cybersecurity unit and was among the founding team at Granulate, which Intel acquired for $650 million in 2022. After a year at Intel, he pivoted to establish Vega with the ambition to make a significant impact in the cybersecurity domain.

Andrei Brasoveanu, partner at Accel, noted that legacy SIEM vendors like Splunk—acquired by Cisco for $28 billion in 2024—have faced criticism for scalability limitations and inability to handle AI-driven data volume increases.

"Splunk and every contender since has always centralized the data, but by doing that you essentially hold the customer hostage," Brasoveanu stated.

Technical Approach and Differentiation

Vega's platform implements security analytics directly within cloud services, data lakes, and existing storage infrastructure, eliminating the need for data migration or architectural overhaul. The company's "North Star" objective was to deliver a solution that is:

• More cost-effective than legacy SIEM platforms

• Superior in threat detection capabilities

• Deployable within minutes for enterprise environments

• Operationally simple with minimal organizational disruption

Market Traction

Despite being only two years old with approximately 100 employees, Vega has secured multi-million-dollar contracts with financial institutions, healthcare organizations, and Fortune 500 companies, including cloud-native enterprises like Instacart.

"The only reason they would do that with a two-year-old startup is because the problem is so painful and other solutions on the market require an unrealistic expectation that the enterprise change the way they operate or do two years of data migrations," Sandler noted. "Vega enables them to just plug and play and achieve immediate detection response value."