Vega Security raises $120M to decentralize enterprise security

The two-year-old cybersecurity startup Vega Security has raised $120 million in a Series B funding round. The new investment nearly doubles the company’s valuation to $700 million and brings its total funding to $185 million. Vega Security plans to use the capital to further develop its AI-native security operations suite, grow its go-to-market team, and expand its operations globally.

The funding round details include:

• Lead investor: Accel
• Participating investors: Cyberstarts, Redpoint, and CRV

Vega Security is targeting the market for Security Information and Event Management (SIEM)—software used by enterprises to analyze security alerts and manage threats. Legacy SIEM systems require organizations to centralize all their security data in one repository before threat detection can occur. According to Andrei Brasoveanu, a partner at Accel, legacy SIEM companies like Splunk, which Cisco acquired in 2024 for $28 billion, are difficult to scale and fail at processing the massive data volumes driven by artificial intelligence. Brasoveanu noted that “Splunk and every contender since has always centralized the data, but by doing that you essentially hold the customer hostage” to high costs and complex management.

To bypass this centralization bottleneck, Vega Security runs its threat detection directly where the data already lives, including in cloud services, data lakes, and existing storage systems. Shay Sandler, co-founder and CEO of Vega Security, stated that the current operating model of SIEM is expensive and causes AI-native security operations to fail. Sandler, who previously co-founded Granulate—a company Intel acquired for $650 million in 2022—noted that Vega Security aims to let organizations achieve incident response readiness without the typical complexity, cost, or drama.

The 100-person startup has already secured multimillion-dollar contracts with banks, healthcare companies, and Fortune 500 firms, including Instacart. Sandler attributed this rapid enterprise adoption to the pain of existing alternatives, noting that other market solutions require companies to undergo years of data migrations or fundamentally alter how they operate.

Why it matters

Vega Security is challenging the legacy SIEM market by enabling security operations to run where data already lives, rather than requiring companies to centralize data in costly, slow-to-scale systems like Splunk.