NextFin News - In a move that underscores the growing obsolescence of legacy cybersecurity architectures, AI-native startup Vega Security announced on February 10, 2026, that it has raised $120 million in a Series B funding round. The investment, led by Accel with participation from Cyberstarts, Redpoint, and CRV, brings the two-year-old company’s total funding to $185 million and nearly doubles its valuation to $700 million. According to TechCrunch, the capital will be used to scale Vega’s distributed threat detection platform, which aims to replace the centralized Security Information and Event Management (SIEM) models that have dominated the industry for two decades.
Headquartered in the burgeoning cybersecurity hub of Tel Aviv with a growing global presence, Vega was founded by Shay Sandler, a veteran of the Israeli military’s elite cybersecurity units and a former founding employee of Granulate. Sandler’s vision is to solve the "data gravity" problem that currently plagues large enterprises. Traditional tools, most notably Splunk—which was acquired by Cisco for $28 billion in 2024—require organizations to ingest and centralize all security data into a single repository before analysis can begin. In an era where AI-driven data volumes are growing exponentially, this process has become prohibitively expensive and dangerously slow.
The technical breakthrough offered by Vega lies in its ability to run security analysis where the data already lives—within cloud services, data lakes, and existing storage systems—rather than forcing a migration. This "plug and play" capability has already allowed the 100-person startup to secure multi-million-dollar contracts with Fortune 500 firms, healthcare providers, and major financial institutions. Sandler noted that the primary driver for this rapid adoption is the sheer pain of the status quo, where enterprises are often forced into two-year data migration projects just to maintain basic visibility.
From a structural perspective, the success of this funding round reflects a broader rebellion against the "hostage" model of enterprise software. Andrei Brasoveanu, a partner at Accel, pointed out that legacy SIEM providers essentially hold customers hostage by requiring data centralization, which creates massive egress costs and vendor lock-in. As U.S. President Trump’s administration continues to emphasize American technological leadership and infrastructure resilience, the shift toward more efficient, decentralized security models aligns with the national priority of protecting critical digital assets without stifling economic growth through excessive operational costs.
The economic implications of Vega’s rise are significant. The cybersecurity market is currently undergoing a "great re-platforming." As enterprises migrate to the cloud, the cost of moving petabytes of data into a centralized SIEM can often exceed the cost of the security software itself. By eliminating the need for data movement, Vega is effectively attacking the margins of both legacy security vendors and cloud service providers who profit from data egress fees. This disruption is particularly timely as AI adoption increases the surface area for attacks, requiring real-time detection that centralized systems struggle to provide due to inherent latency.
Looking ahead, the trajectory for Vega and the wider cybersecurity sector suggests a move toward "invisible security." The goal is to move away from the "drama" of complex implementations toward systems that integrate seamlessly into existing data architectures. If Vega can maintain its current growth rate, it is likely to become a prime acquisition target for larger tech conglomerates looking to modernize their security portfolios, or it could head toward an IPO as the definitive leader of the post-SIEM era. The next 18 months will be critical as the company expands its go-to-market team to compete directly with the sales machinery of Cisco and other established giants.
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