Rethink / Cyber / Celebrating Gem Security’s New Funding: $34M Raised to Date to Lead Cloud Detection and Response

Celebrating Gem Security’s New Funding: $34M Raised to Date to Lead Cloud Detection and Response

Amir Zilberstein September 27, 2023

Earlier this year, we used this space to announce Gem Security’s emergence from stealth. At the time, the company had raised an $11M Seed, led by Team8 Enterprise, to pioneer the emerging category of  Cloud Detection and Response (CDR). Today, it’s been announced that Gem has reached another major milestone by securing a $23M Series A led by GGV Capital and joined by IBM Ventures, Silicon Valley CISO Investments (SVCI), and us at Team8.

On a Rocketship Trajectory

Gem operates in the booming cloud security market, which has become a strategic priority for enterprises as they continue to shift workloads and business processes into public cloud services. With critical operations and data now managed in mostly perimeter-less, ephemeral environments where the infrastructure is owned by the cloud service provider (CSPs), security challenges have intensified. While most of the existing cloud security solutions have focused on identifying misconfigurations and reporting on cloud security posture — addressing “left of boom” — Gem’s platform analyzes cloud activity in real-time to provide “right-of-boom” breach visibility for SecOps teams.

The company’s Cloud Detection & Response (CDR) platform significantly shortens the time to detect cloud-native threats, investigate alerts, and contain attacks. Moreover, it continuously ensures the right cloud telemetry collection to rapidly alert on attacks, analyze cloud forensics, and automatically construct incident timeliness to understand the root causes of a cloud breach.

Gem was established with the support of Team8’s unique company-building model by three seasoned cybersecurity executives – Arie Zilberstein, Ofir Brukner, and Ron Konigsberg. Today, they have announced their Series A, bringing the company’s total funding to $34M in less than 16 months. During this period, the company journey was nothing short of exceptional.

Soaring to New Heights

Over the past year and a half since its founding, Gem has shown impressive market traction. We take immense pride in the milestones they’ve achieved and the remarkable progress they’ve made, all of which bodes well for their future success. Just to highlight a few of their accomplishments:

1. Logo and revenue growth

Since launching in early 2023, Gem Security has dramatically scaled ARR by helping secure cloud operations for dozens of global organizations in diverse verticals, including financial services, hospitality, healthcare, manufacturing, energy, and eCommerce. The fact that big enterprises are choosing Gem to secure their most mission-critical workloads is the ultimate validation signal. 

2. Industry recognition

Analysts and other industry experts play a major role in the cybersecurity market. Gem has been recognized by Gartner multiple times, including as a Sample Vendor for Cloud Investigation and Response Automation (CIRA) in the latest Workload and Network Security Hype Cycle and as a Cool Vendor™ for the Modern Security Operation Center.

3. Strategic alliances

Selling into the public cloud is, by definition, an ecosystem play, where working hand-in-hand with the CSPs greatly increases a startup’s chance of success. Gem has partnered with all leading CSPs, as well as IBM and Snowflake, and has successfully collaborated with both AWS and Azure to plug vulnerabilities that put millions of users at risk.

4. Series A

Another great achievement is the funding itself. Gem secures its Series A round from top VCs with a proven industry track record: 

  • GGV Capital, which led the funding round, is a highly respected global venture firm that has backed many category-defining enterprise software companies, including Airbnb, Slack, and Zendesk.
  • IBM Ventures, which joined the round, is an established venture fund with deep enterprise ties and vast experience in cybersecurity. 
  • Silicon Valley CISO Investments (SVCI) also joined as a strategic investor – an angel investor syndicate made up of industry-leading CISOs from companies including McDonalds, Snowflake, SoFi, Coinbase, and others – who live and breathe the challenges that cybersecurity teams face on a daily basis.

The Next Frontier: Execution at Scale

The achievements Gem has reached in less than a year and a half are truly astonishing. The next step in its journey will be focused on execution. The team will need to continue building on their strong early momentum, growing market awareness, and the strong foundation of partnerships and integrations they have already forged. If successful, they can become a generational company – and help accelerate cloud adoption for thousands of organizations worldwide.


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