What happened
Orion Security, a Tel Aviv-based data loss prevention startup, has secured $32M in Series A funding led by Norwest Venture Partners. The round brings total capital raised to $38M, following a $6M seed round in March 2025 led by Pico Partners and FXP Ventures, with participation from Underscore VC.
Why it matters
The timing aligns with enterprise IT's growing frustration with legacy DLP tools. Forcepoint DLP Endpoint faces compatibility questions as versions age out. Symantec DLP 16.0 nears end-of-life, forcing enterprises to evaluate replacement strategies. Traditional DLP systems, built on rigid rule sets, struggle with modern cloud workflows and remote teams, generating false positives that burden security teams.
Orion's approach differs: its AI maps what founders call "operational DNA" by observing data flows across cloud applications, browsers, and endpoints. Instead of policy libraries that require constant manual updates, the platform uses large language models to understand context and detect genuine exfiltration attempts, whether from human error, insider threats, or external attackers.
The real question
Can AI-native DLP actually reduce the operational burden, or does it just shift the problem? Legacy vendors face similar challenges: Varonis, Digital Guardian, and GuardWare all compete in regulated industries where migration carries risk. The average data breach costs around $5M according to 2024 research, making "move fast and break things" an unacceptable strategy for DLP transitions.
Orion Security ranks #29 in the DLP category, suggesting early traction but unproven scale. The platform claims accuracy improves over time as models learn organizational patterns. What's missing: independent validation of false positive rates and customer case studies showing successful migrations from entrenched vendors.
What to watch
Whether enterprises actually migrate legacy DLP or run AI tools as an overlay. The latter path, adding Orion on top of existing Forcepoint or Symantec deployments, might prove more practical than rip-and-replace. For CIOs evaluating alternatives, the cost analysis needs to include not just licensing but the operational overhead of managing dual systems during transition.
Founded by CEO Nitay Milner and CTO Yonatan Kreiner in 2024, Orion emerged from stealth last year. The Series A funds product development and go-to-market expansion as enterprises begin DLP replacement evaluations ahead of support deadlines.