Top 5 Venture Capital Firms Investing in Cloud Security Startups

For founders in the cloud security space, finding investors who genuinely understand the nuances of your industry is a critical part of raising capital. Presenting your company to a firm that already gets the world of information security and cybersecurity can make all the difference.

To help you prepare for your fundraise, our team has curated this overview of the top venture capital firms active in the security sector. We created this guide to give you a clear, quick summary of the investors most relevant to your company.

Actively raising? You can now access non-dilutive funding options like venture debt and credit lines through Rho Capital. Rho also provides access to business banking, corporate cards, and bill pay—built for startup teams moving fast.

Key Takeaways

• For cloud security startups, securing venture funding means gaining a partner with deep industry knowledge in addition to capital.

• Venture firms like Tola Capital, Light Street Capital, Adit Ventures, and Dreamit Ventures are notable backers of companies in the cloud security sector.

• Once you've secured funding, Rho helps you manage your new capital with integrated business banking, corporate cards, and automated bill pay.

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

Whether you're an early-stage company or preparing for an exit, it helps to know who to talk to. Here is a quick overview of venture capital firms that invest in cloud security companies at each stage.

Pre-seed and Seed VC Firms in Cloud Security

This initial funding stage is for companies at the very beginning of their journey, typically focused on building a minimum viable product and finding initial market fit. For founders in the security space, firms like Dreamit Ventures and Tola Capital are known to support companies at this foundational stage.

Early Stage VC Firms in Cloud Security

Early-stage funding, which includes Series A and B rounds, helps companies with a validated product and early revenue to scale their team and accelerate growth. As you prepare for these rounds, several enterprise security venture capital firms focus here, including Tola Capital, Light Street Capital, and Adit Ventures.

Late Stage VC Firms in Cloud Security

Late-stage rounds are for mature companies with significant traction, often used to finance expansion or prepare for an exit like an IPO or acquisition. Once you've secured this level of funding, Rho’s integrated platform helps you manage your capital with tools like business banking, corporate cards, and automated bill pay, while firms like Light Street Capital, Adit Ventures, and East Los Capital participate in these later rounds.

It's also worth noting that some security-focused venture capital firms invest across multiple stages, from seed to exit.

To help you find the right investment partner, our team has put together this overview of top VC firms in the cloud security space. We've included key details on their investment stages, geographic focus, and what makes each firm a strong potential partner.

1. Tola Capital

Tola Capital is a global venture firm that partners with enterprise software companies, focusing on their early stages of growth. Based in Seattle and founded in 2010, the firm has a long track record of backing software businesses with a data-centric approach.

The firm invests across multiple stages, from seed to late-stage rounds, with a clear focus on enterprise software, developer tools, and cloud security. Their portfolio includes high-growth companies like the data-governance unicorn OneTrust and the infrastructure-as-code platform Pulumi.

Tola Capital could be a strong partner if you're building an enterprise software company and value investors with deep technical understanding. Once you secure a partner like Tola, Rho can help you manage your new capital with integrated banking, corporate cards, and spend management tools.

• Investment stages: Seed, Early Stage, Late Stage, Private Equity
• Industries of focus: Enterprise Software, Cloud Security, Developer Tools
• Geographical presence: Global investments, based in Seattle, WA
• Founded: 2010
• Notable investments: OneTrust, Pulumi, Clipchamp, Glia
• Portfolio size: 76 investments

You can refer to their website here.

2. Light Street Capital

Light Street Capital is a global investment firm that backs both private and public companies in the technology and media industries. Based in Palo Alto, they have a flexible mandate that allows them to support businesses from early growth stages through to the public markets.

The firm is known for backing category-defining companies, with a portfolio that includes giants like Uber, Slack, and GitLab. Their strategy spans from early-stage venture rounds to post-IPO investments, showing a commitment to long-term growth.

This firm could be a great match if you're building a high-growth technology company and want an investor with experience across the full company lifecycle. Their track record suggests a focus on businesses with the potential for significant market impact.

• Investment stages: Early Stage Venture, Late Stage Venture, Post-IPO, Secondary Market
• Industries of focus: Technology, Media, Cloud Computing, Cloud Security, E-Commerce
• Geographical presence: Global investments, based in Palo Alto, CA
• Founded: 2010
• Notable investments: Uber, Slack, Unity Technologies, GitLab, AMD
• Portfolio size: 26 investments

You can refer to their website here.

3. Adit Ventures

Adit Ventures is a venture capital firm with a significant presence across the United States, managing over $400 million in assets. They operate with a flexible investment model, participating in rounds from early-stage to the secondary market.

The firm invests across a wide spectrum of technology sectors, including cybersecurity, FinTech, and even space travel. Their portfolio features high-profile companies like SpaceX and Rubrik, showing a focus on businesses with massive growth potential.

This firm could be a strong partner if you are building an ambitious technology company and need an investor with experience in later-stage growth. Once you secure that funding, Rho’s integrated platform helps you manage your new capital with business banking, corporate cards, and automated bill pay.

• Investment stages: Early Stage Venture, Late Stage Venture, Secondary Market
• Industries of focus: Cyber Security, Cloud Security, FinTech, Big Data, Space Travel
• Geographical presence: US-based, with an office in New York, NY
• Founded: 2014
• Notable investments: SpaceX, Animoca Brands, Flexport, Rubrik, Dataminr
• Portfolio size: 25 investments

You can refer to their website here.

4. Dreamit Ventures

Dreamit Ventures is a Philadelphia-based firm that concentrates on startups that are ready to scale. They support companies that have already established initial traction through pilots or early revenue, helping them prepare for significant growth.

The firm has a distinct focus on security-related industries, from cloud security to fraud detection, and invests from seed to early stages. Their portfolio includes notable exits like LevelUp, acquired by Grubhub, and early investments in well-known consumer brands like SeatGeek and Houseparty.

Dreamit could be a strong match if your security company has moved beyond the idea phase and has a product with proven market validation. As you prepare to scale, Rho Capital can also connect you with non-dilutive funding options like venture debt and credit lines to complement your equity round.

• Investment stages: Seed, Early Stage Venture, Convertible Note

• Industries of focus: Cloud Security, Fraud Detection, Generative AI, Network Security

• Geographical presence: Based in Philadelphia, PA

• Founded: 2007

• Notable investments: SeatGeek, Houseparty, LevelUp, TrendKite

• Portfolio size: Over 400 investments

You can refer to their website here.

5. East Los Capital

East Los Capital is a Los Angeles-based firm that operates as both a private equity and venture capital investor. They concentrate on tech-enabled companies in the lower middle market, spanning software, services, and media.

The firm shows a flexible mandate, investing from venture rounds to private equity buyouts. Their portfolio features companies with strong technical foundations, like the exited AWS partner Caylent and the payments infrastructure platform Finix.

This firm could be a good match if your company operates in a tech-enabled sector and you seek an investor with experience in both venture growth and later-stage private equity. As you evaluate partners, remember that Rho Capital can also connect you with non-dilutive funding options like venture debt to complement your equity round.

• Investment stages: Private Equity, Venture
• Industries of focus: Cloud Security, Cyber Security, Software, Health Care, Internet, Media
• Geographical presence: Based in Los Angeles, CA
• Founded: 2018
• Notable investments: Caylent, Basepaws, Finix, FLYR Labs, TRM Labs
• Portfolio size: 22 investments

You can refer to their website here.

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

The venture capital firms active in cloud security show a healthy and balanced interest in the sector. You'll find investors focused on every stage, from seed and early-stage specialists like Dreamit Ventures to firms like Adit Ventures that support companies through later growth rounds. This variety suggests a mature market with opportunities for founders at different points in their company's development.

Geographically, the investors are also spread out, with headquarters in major hubs like Palo Alto, Seattle, New York, and Philadelphia. This indicates that strong cloud security companies can attract attention from capital partners across the country, not just in Silicon Valley.

As you prepare your fundraising strategy, remember that equity isn't your only option. Rho Capital can connect you with non-dilutive financing like venture debt to complement your round. After your fundraise, our integrated platform helps you put that new capital to work with business banking, corporate cards, and automated bill pay.

Raise Confidently with Rho

Having a focused list of relevant investors is invaluable when your time and energy are limited during a fundraise. We created this guide to help you connect with the right partners for your cloud security company.

If you’re seeking funding, Rho Capital connects you to non-dilutive funding options like venture debt and credit lines through a fast, guided process. We help founders access financing tailored to their stage and business model.

Once capital is secured, Rho provides integrated tools to help you manage and deploy funds efficiently. Our platform includes business banking, corporate cards, and automated bill pay to help your startup put its new funding to work.

FAQs about Venture Capital Firms Focused on Cloud Security

Are there notable cybersecurity VC firms outside the US?

Yes, many top cybersecurity VC firms are based internationally. Hubs like Tel Aviv and London are well-known for their strong security ecosystems, producing and funding innovative companies that compete on a global scale.

What do seed stage venture capital firms look for in security startups?

At the seed stage, investors focus on your team's expertise and unique technical insight. They want to see a clear vision for the problem you're solving and early evidence that a market for your solution exists.

Should I approach a security-focused venture capital firm or a generalist tech VC?

A security-focused firm brings deep industry knowledge and a relevant network, while a generalist tech VC may offer broader connections. Consider which type of partner will best support your specific growth goals and product roadmap.

How can I strengthen my financial position before meeting with VCs?

Securing non-dilutive funding can improve your negotiating position. Rho Capital connects you with options like venture debt, allowing you to extend your runway and achieve key milestones before raising an equity round.

Which US cities are hubs for security venture capital firms?

While the Bay Area remains a key hub, you'll find significant security venture capital firms in cities across the US, including New York, Seattle, and Philadelphia. Strong companies can attract capital regardless of their specific location.

How can Rho help after I raise my venture capital round?

Once you've secured funding, our integrated platform helps you manage it. With business banking, corporate cards, and automated bill pay in one place, you can deploy your new capital efficiently. Get started with Rho.