Unveiling Vega Security: The Stealthy Israeli Cyber Startup Raising $65M

Photo: Netanel Tobias

Investors are rushing in, even as the company remains under wraps.

Israeli high-tech has a knack for creating stars, and when a company generates buzz like the next Wiz, investors flock to it. A recent example is Eon, the startup led by Ofir Ehrlich, which raised over $200 million in less than a year despite relatively low revenues. Now, the spotlight is on Vega Security, an Israeli cybersecurity startup.

Founded in early 2024 by Shay Sandler and Eli Rozen, two relatively unknown executives, Vega Security has managed to raise $65 million in two swift funding rounds. The company’s valuation in the first round was estimated at $200 million—a remarkably high figure for an initial funding round—and in the ongoing second round, the valuation is expected to double or even exceed that. Notably, the company claims to have several significant Fortune 100 clients, although current revenues remain very low.

Shay Sandler and Eli Rozen. (Photo: Netanel Tobias)

The first investor was Gili Raanan of Cyberstarts, with Lior Simon leading the investment and serving as a board member. Subsequent funding rounds attracted numerous angel investors and several prominent American and European venture capital firms, including Redpoint Ventures, Accel, and CRV. Vega Security is still operating in stealth mode and has not yet officially launched.

In its investor presentation, the company posits that traditional methods of detecting cyberattacks were effective when the attack surface was small and threats were simple. However, these conditions no longer apply. Vega Security claims to offer a new and more effective approach to cyberattack detection.

Shay Sandler, serving as CEO, is a former 8200 officer and a founding member of Granulate, which was acquired by Intel in 2022 for approximately $650 million. Eli Rozen, the CTO, also has a background in Unit 8200 and previously worked at Intello and Granulate.