Cyber Startup Vega Security Raises $65M Without Public Launch or Product
Founded in early 2024 by two former Unit 8200 members, Israeli cyber firm Vega Security has quietly secured $65 million in funding while remaining in stealth mode.
Elena Whitmore 
In Israel’s competitive cybersecurity ecosystem, new players often emerge with strong backing even before unveiling a product. Vega Security, a stealth-mode startup founded in early 2024 by Shay Sandler and Eli Rozen, is the latest example. Although the company has not yet publicly launched or disclosed any product offerings, it has already raised $65 million across two funding rounds. According to sources familiar with the matter, Vega Security reached a $200 million valuation in its first round—an unusually high figure for such an early-stage company. The ongoing second round is expected to bring the valuation to double or even more.
Initial backers include prominent cyber investors
The company’s first investment came from Cyberstarts, with Gili Raanan leading the early support and Lior Simon representing the fund on Vega's board. The second round attracted notable interest from American and European funds including Redpoint Ventures, Accel, and CRV. A range of angel investors also participated. Although details of the company’s operations remain undisclosed, investor presentations cited “several significant Fortune 100 clients,” suggesting a focus on enterprise-level cybersecurity needs. However, revenue levels are reportedly still limited.
Founders bring Unit 8200 and startup experience
Shay Sandler, Vega Security’s CEO, is a former officer of Unit 8200, the elite tech intelligence unit of the Israel Defense Forces. He was also part of the founding team at Granulate, a performance optimization startup that was acquired by Intel in 2022 for around $650 million. Following Intel’s global downsizing efforts, Granulate’s operations were shut down. Eli Rozen, who serves as CTO, shares a similar background, having also served in Unit 8200 before working at Intello, which was later acquired by SailPoint, and later joining Granulate.
Challenging conventional cyber detection methods
In its pitch to investors, Vega Security stated that traditional methods of cyberattack detection were sufficient “when the attack surface was small, threats were simple, and costs were low.” According to the company, those conditions no longer exist. It claims to be offering a more effective approach tailored to today’s threat landscape.
As of now, Vega Security remains in stealth mode, and its founders have not issued any public statements. Industry observers are watching closely to see whether the company’s high valuation and investor confidence translate into a viable product once it exits stealth.
