The secretive Israeli cyber startup worth hundreds of millions—Vega Security raises $65M in stealth
Investors are rushing in, even as the company remains under wraps.
Israeli high-tech loves to create stars, and when a company generates buzz as the next Wiz, investors rush in. A recent example is Eon, the startup led by Ofir Ehrlich and his partners, which raised over $200 million in less than a year despite relatively low revenues. Now, Calcalist reveals the latest company attracting investor interest: the Israeli cybersecurity startup Vega Security.
Vega Security was founded in early 2024 by Shay Sandler and Eli Rozen, two relatively unknown executives in the cybersecurity industry. Calcalist has learned that the duo, both formerly of Granulate, managed to raise $65 million in two rapid 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 second round, which is still ongoing, the valuation is expected to double or even exceed that figure. In its investor pitch, the company highlighted several significant Fortune 100 clients, but Calcalist estimates that its current revenues remain very low.
The company’s first investor, as is common in cybersecurity funding, was Gili Raanan of Cyberstarts, with Lior Simon leading the investment for the VC and serving as a board member on the startup. Subsequent funding rounds attracted numerous angel investors, as well as several prominent American and European venture capital firms. These include the U.S.-based Redpoint Ventures, the European Accel fund, and the American firm CRV. Vega Security is still operating in stealth mode and has not yet been officially launched. The company’s founders declined to provide a response.
In its investor presentation, the company argued that traditional methods of detecting cyberattacks were effective when the attack surface was small, threats were simple, and costs were low. Today, those conditions no longer apply. Vega Security claims to offer a new and more effective approach to cyberattack detection.
Sandler, who serves as CEO, is a former 8200 officer and was a founding team member of the startup Granulate, which was acquired by Intel in 2022 for approximately $650 million after raising $45 million. However, as part of Intel’s recent downsizing, Granulate’s operations were shut down.
Rozen, Vega Security’s CTO, also served in Unit 8200 before working at Intello, which was later acquired by SailPoint, and then at Granulate.
