Modern enterprises are increasingly struggling to manage the massive volumes of security data generated, particularly within complex cloud environments.

Traditional security information and event management (SIEM) tools, including industry leader Splunk, are proving inadequate.

These legacy solutions require storing all security data in a centralized location before threat detection can occur—a process that is slow, costly, and prone to failure as data volumes surge and information is spread across multiple cloud services and storage systems.

To address this challenge, AI cybersecurity startup Vega Security is taking a radical new approach.

Founded two years ago, Vega conducts security operations directly where data resides, implementing AI-native security solutions within existing cloud services, data lakes, and storage systems. This model eliminates the need for costly and time-consuming data centralization.

Vega recently closed a $120 million Series B funding round, as reported by TechCrunch, nearly doubling the startup’s valuation to $700 million and bringing total funding to $185 million.

The round was led by Accel, with participation from Cyberstarts, Redpoint, and CRV.

The funding will be used to expand Vega’s AI-native security operations suite, grow its go-to-market team, and support global expansion.

Co-founder and CEO Shay Sandler told TechCrunch that the traditional SIEM model, which has dominated for two decades, is “crazy expensive” and limits the potential of AI-native security operations. In complex cloud environments,

Sandler said, the legacy approach can inadvertently increase exposure to sophisticated threats.

Vega’s model, by operating directly where data lives, allows organizations to maximize enterprise data for faster incident response without the high costs or operational friction associated with centralized systems.

Sandler’s background—including experience in the Israeli military cybersecurity unit and as a founding employee of Granulate (acquired by Intel for $650 million in 2022)—helped attract investors like Andrei Brasoveanu of Accel.

Brasoveanu highlighted that legacy SIEM providers, including Splunk (acquired by Cisco for $28 billion in 2024), struggle to scale in the age of AI, effectively holding customers “hostage” by requiring centralized data storage.

Vega emphasizes that while transitioning to a new solution can be daunting, the company’s goal is to provide a cost-effective, superior, and easy-to-adopt solution for enterprises, even at a global scale.

Sandler noted that Vega’s approach allows organizations to implement AI-native detection and response “within minutes”, without complex migrations.

The market has responded positively.

The 100-person startup has already secured multimillion-dollar contracts with major banks, healthcare companies, and Fortune 500 firms, including cloud-heavy companies like Instacart.

According to Sandler, Vega’s plug-and-play solution enables immediate threat detection and response, addressing the limitations of legacy systems that often require multi-year operational changes.