Vega Security raised a $120 million Series B round, nearly doubling its valuation to $700 million. The two-year-old AI cybersecurity startup challenges the legacy SIEM model by processing security data directly within cloud environments, data lakes, and existing storage systems, rather than requiring costly centralization. This approach targets the exploding data volumes of modern enterprises.

Legacy tools like Splunk, acquired by Cisco for $28 billion in 2024, centralize all security data for analysis—a process described as prohibitively expensive and slow for cloud-scale operations. Vega’s model aims to deliver immediate AI-native threat detection without demanding data migration, addressing a critical scalability failure point for incumbent solutions in complex, distributed cloud setups.

The strategy is attracting major clients. Vega already has multi-million-dollar contracts with banks, healthcare firms, and Fortune 500 companies like Instacart. Investor Andrei Brasoveanu of lead backer Accel notes that existing SIEMs hold customers hostage through centralization. Founder Shay Sandler, a former Israeli cyber unit member who sold Granulate to Intel, emphasizes making adoption frictionless for large enterprises.

Vega’s $185 million total funding will expand its AI suite and global go-to-market team. Its early enterprise wins suggest a viable path to displacing entrenched SIEM vendors by solving a painful operational and cost problem for cloud-heavy organizations.