Investing in Stream.Security, a Company Helping Enterprises Secure their Cloud Environments in Real-Time

Enterprise cloud adoption is on the rise, and concerns about data security are on the rise with it.

Per a 2024 Gartner report, 70% of enterprises will use industry cloud platforms by 2027 — up from just 15% in 2023. As a result, Gartner also forecasts that spending on cloud security will grow by 24% in 2024, making it the fastest-growing segment of the security and risk management market.

However, most of today’s cloud security solutions are unable to deliver the kind of comprehensive, real-time visibility into an enterprise’s cloud environment that Security Operations (SecOps) teams need to properly identify and remediate cloud threats and exposures. This is because many such solutions are extensions of security tools built for data stored on-premises, a much simpler and more stable environment than the complex and dynamic world of the cloud.

Meanwhile, cyberattackers are increasing the speed and sophistication of their attacks, using new AI and automation technologies to breach an organization’s defenses in a matter of minutes. According to a 2024 Crowdstrike report, 82% of organizations take more than seven hours to respond to a cloud attack. With the average cost of a data breach exceeding $4.88 million and 65% of today’s data breaches involving a cloud component, the need for a truly real-time, cloud-native security solution is evident across industries and around the world.

This is why we at Citi Ventures are so excited about Stream.Security (Stream), the newest addition to our portfolio. Founded in 2020 by cloud security experts Or Shoshani, Stav Sitnikov and Liran Roffman, Stream offers a next-gen Cloud Detection and Response (CDR) platform that enables enterprise security teams to detect, investigate, priotize and respond to cyber threats at the speed of the cloud.

What sets Stream apart from other CDR solutions is its innovative approach to securing a cloud environment. When Stream customers onboard its platform, Stream creates a precise model of the organization’s entire cloud-native stack, known as a “Cloud Twin,” which it constantly updates to simulate all configuration changes happening within the actual stack. This enables the organization to calculate the impact of its cloud configuration changes in near-real time, allowing them to pinpoint threats, exposures and vulnerabilities instantly.

Using the Stream platform, companies can quickly identify attack paths across their cloud infrastructure, assess the potential impact of breaches and dramatically reduce mean time to respond (MTTR). The Stream platform also harnesses AI to streamline investigations and allows security teams to write custom “roles” to automatically remediate certain identity and configuration vulnerabilities — helping maximize the productivity of over-burdened enterprise SecOps teams.

As the only cloud security solution available today that is aware of an enterprise’s security posture, behavior and business impacts, Stream is poised to capture a significant share of the cloud security market, which Fortune Business Insights projects will grow from $43.74 billion this year to $156.25 billion by 2032.

Given its game-changing product, massive market opportunity and industry-leading team, we are proud to invest in Stream.Security’s Series B funding round, led by U.S. Venture Partners. We are joined by Energy Impact Partners (EIP), Cervin Ventures, TLV Partners, Stanford Endowment Fund and Glilot Capital Partners VC.

Our congratulations to Or, Stav, Liran and the rest of the Stream team! We look forward to helping them strengthen real-time cloud security for enterprises around the world.