Cloud Security Startups See Surging VC Interest

Significant increases in venture capital investment for cloud security startups highlight the growing importance of cloud security as companies increasingly move their infrastructure online, SC Media reports.

Fortune Business Insights projects the cloud security market to grow from $43.74 billion in 2024 to $156.25 billion by 2032, with funding for cloud security startups rising 35% year-over-year to nearly $1.4 billion in 2024, according to Altitude Cyber.

However, such figures were noted by Dino Boukouris, founder and managing partner at Altitude Cyber, to be significantly impacted by the $1 billion raised by Wiz in a Series E funding round. Investors are also seeking innovative security solutions amid risimng cyber threats.

Emerging startups like LayerX, Opus Security, and ZEST Security are tackling vulnerabilities using AI-driven approaches, while established players like Skyhawk Security and Oasis focus on non-human identity security. AllegisCyber Capital's Bob Ackerman emphasizes that the dynamic nature of cloud infrastructure requires a new era of cybersecurity innovation.