Top 5 Venture Capital Firms Investing in Cloud Security Startups

For founders in the cloud security space, preparing to raise capital means more than just a great pitch deck. It’s about finding the right investors who truly understand the specifics of cybersecurity and information security. Knowing which venture capital firms are active in your sector is a critical first step.

To help you identify the right partners, our team put together this overview of top VC firms investing in security startups. We've curated this list to give you a quick, clear picture of the key players so you can focus your fundraising efforts.

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Which VC Firms in Cloud Security Are Right for Your Stage?

Whether you're an early-stage company or preparing for an exit, knowing who to talk to is essential. Here is a quick look at the VC firms that invest in cloud security, broken down by stage.

Pre-seed and Seed VC Firms in Cloud Security

Pre-seed and seed funding are the earliest rounds of capital, typically used to validate an idea, build a minimum viable product, and find initial market fit. For founders at this initial stage, security-focused venture capital firms like Dreamit and Tola Capital are active investors.

Early Stage VC Firms in Cloud Security

Early-stage funding, which includes Series A and B rounds, helps startups with a proven product scale their operations, grow their team, and expand their market presence. Some early-stage VC firms that invest in enterprise security include Tola Capital, Light Street Capital, and Adit Ventures.

Late Stage VC Firms in Cloud Security

Late-stage capital is for established companies looking to accelerate growth significantly, prepare for an initial public offering (IPO), or consider acquisition opportunities. Technology venture capital firms such as Light Street Capital, Adit Ventures, and East Los Capital often participate in these later rounds.

Keep in mind that many venture capital firms invest across multiple stages, supporting companies from their initial funding rounds through to their exit.

To help you find the right fit, here is our breakdown of top VC firms in the cloud security space. You'll find information on their preferred investment stages, geographic focus, and the specific advantages each one offers to founders.

1. Tola Capital

Based in Seattle, Tola Capital is a venture firm that invests globally in early-stage enterprise software companies. Since its founding in 2010, the firm has concentrated on backing businesses with strong, data-driven foundations and a clear focus on software innovation.

Tola Capital shows a clear preference for product-centric companies, with notable investments like the infrastructure-as-code platform Pulumi and the data-governance unicorn OneTrust. They support companies from seed rounds through to later stages, signaling a commitment to long-term partnerships with their portfolio companies.

This firm is a strong potential partner if you are a founder building enterprise software, especially in areas like cloud infrastructure, security, or developer tools. They appear well-suited for teams with deep technical expertise and a clear vision for scaling their product.

• Investment stages: Seed, early-stage, and late-stage venture
• Industries of focus: Enterprise Software, Cloud Security, Developer Tools, Financial Services
• Geographical presence: Global investments with a headquarters in Seattle, Washington
• Founded: 2010
• Notable portfolio companies: Clipchamp (acquired by Microsoft), OneTrust, Pulumi
• Number of investments: 76

You can refer to their website here.

2. Light Street Capital

Light Street Capital is a global investment firm based in Palo Alto that backs both private and public companies. They primarily focus on the technology and media industries, investing across the entire company lifecycle.

The firm shows a clear preference for high-growth companies, investing from early-stage venture rounds all the way to post-IPO equity. Their portfolio includes major technology names like Slack and GitLab, signaling a focus on businesses with the potential for significant market impact and large-scale exits.

This firm could be a good fit if you are a founder with a proven product and significant market traction, especially in sectors like cloud computing or developer tools. They are well-positioned to support companies aiming for an IPO or a major acquisition.

• Investment stages: Early-stage venture, late-stage venture, post-IPO, secondary market
• Industries of focus: Technology, Media, Cloud Security, Financial Services, E-Commerce
• Geographical presence: Global investments with a headquarters in Palo Alto, California
• Founded: 2010
• Notable portfolio companies: Uber, Slack, Unity, GitLab, AMD
• Number of investments: 26

You can refer to their website here.

3. Adit Ventures

Adit Ventures is a New York-based investment firm that manages over $400 million in assets across three US offices. Since its founding in 2014, the firm has built a broad network of over 1,250 limited partners to support its portfolio companies.

The firm invests across a company's full lifecycle, from early and late-stage venture rounds to the secondary market. Their portfolio includes ambitious companies like SpaceX and the cybersecurity firm Rubrik, indicating a focus on businesses with the potential for massive scale.

This firm is a good fit for founders with a clear path to significant growth who are looking for a financial partner for the long haul. Their broad technology focus makes them a potential match for companies in sectors ranging from cybersecurity to space travel.

• Investment stages: Early-stage venture, late-stage venture, secondary market
• Industries of focus: Cybersecurity, FinTech, Big Data, IoT, Space Travel
• Geographical presence: US-based with headquarters in New York
• Founded: 2014
• Notable portfolio companies: SpaceX, Rubrik, Flexport, Dataminr
• Number of investments: 25
• Number of exits: 6

You can refer to their website here.

4. Dreamit Ventures

Dreamit Ventures is a Philadelphia-based firm that backs startups with existing pilots or revenue. They focus on companies that are primed and ready to scale their operations.

The firm has a strong concentration in the security sector, including cloud, network, and fraud detection. Their track record includes significant exits like LevelUp, a mobile payments company acquired by Grubhub, and the popular social app Houseparty, which was bought by Epic Games.

Dreamit appears to be an excellent match for founders who have moved beyond the idea stage and have a product with early traction. If you have initial customers and are looking for a partner to help you grow quickly, this firm could be a strong fit.

• Investment stages: Seed, early-stage venture, convertible notes, non-equity assistance
• Industries of focus: Security (Cloud, Network, Fraud Detection), Generative AI
• Geographical presence: Headquarters in Philadelphia, Pennsylvania
• Founded: 2007
• Notable portfolio companies: SeatGeek, Houseparty (acquired by Epic Games), LevelUp (acquired by Grubhub)
• Number of investments: 403
• Number of exits: 53

You can refer to their website here.

5. East Los Capital

East Los Capital is a Los Angeles-based private equity and venture capital firm. They invest in tech-enabled companies across the lower middle market, with a broad interest in software, internet, and media.

The firm operates as both a private equity and venture capital investor, supporting companies at various stages of growth. Their portfolio includes a successful exit with the cloud-services partner Caylent and backing for high-growth companies like the payments platform Finix.

This firm could be a good match if you are a founder of a tech-enabled business in sectors like cloud security or software. Their dual focus on venture and private equity suggests they can support companies from early growth through to maturity.

• Investment stages: Private equity, venture
• Industries of focus: Cloud Security, Cyber Security, Software, Internet, Health Care, Media
• Geographical presence: Headquarters in Los Angeles, California
• Founded: 2018
• Notable portfolio companies: Caylent, Basepaws, Finix, FLYR Labs, TRM Labs
• Number of investments: 22
• Number of exits: 7

You can refer to their website here.

What This Tells Us About The VC Scene for Cloud Security Companies

This review of venture capital firms shows a healthy and well-distributed funding environment for the cloud security sector. The investors on our list are active across all funding stages, so whether you are raising a seed round or preparing for a late-stage push, there are firms ready to invest. You have options from early-stage specialists to funds that support companies through to maturity.

Geographically, capital is not just concentrated in one area. With firms based in New York, Seattle, and Los Angeles, there is a good spread of investors across the US, and several also have a global reach. This variety means you have a solid range of potential partners to consider as you plan your next steps.

Raise Confidently with Rho

Having a focused list of relevant investors saves you critical time and energy. It lets you concentrate on building relationships with the right partners for your company.

If you’ve just raised, Rho can help you set up your financial stack in minutes. We make it simple to put your new capital to work immediately.

Our platform provides business banking, corporate cards, and automated bill pay. These tools are designed to help you manage your funds efficiently as you grow your startup.

FAQs about Venture Capital Firms Focused on Cloud Security

Which international hubs have strong security venture capital firms?

Beyond the US, cities like London and Tel Aviv are major centers for cybersecurity investment. These hubs have a high concentration of security talent and investors with deep industry knowledge, offering excellent opportunities for founders seeking global partners.

What is the best way for security startups to approach VC firms?

A warm introduction through a mutual connection is almost always the most effective approach. If that isn't possible, a concise, well-researched email that clearly outlines your value proposition and traction can also open doors with the right investors.

Do VC firms specialize in specific areas like AI security?

Yes, many firms develop specific expertise in niches like AI, data, or enterprise security. Targeting investors with a proven track record in your specific domain can give you access to more relevant guidance and a more valuable network.

What should I look for in a security-focused venture capital firm besides funding?

Look for partners who offer more than capital. Consider their network, their understanding of the security sales cycle, and their experience helping companies with go-to-market strategy. The right firm becomes an extension of your team.

How can I manage my new funding after a successful raise?

Once you've secured capital, you need a financial stack that keeps up. Rho provides integrated banking, corporate cards, and automated payments, so you can manage your funds and focus on growing your company.