How Vectra AI, Billion-Dollar Startup is Using AI to Outpace Cybercriminals 

Our mission is to ensure that we’re providing the same level of protection for AI-driven threats as we are for traditional attack surfaces.

In the early 2010s, the world of cybersecurity was about to undergo a radical transformation. While traditional security solutions worked tirelessly to patch holes and prevent breaches, a massive cyberattack quietly broke through the defenses of several companies, leaving devastation in its wake. Hitesh Sheth, then the COO at Aruba Networks, received word of the breach from a customer who had previously trusted him with their security needs. It wasn’t just a routine cyberattack; it was a sophisticated, nation-state operation that current tools were unable to prevent.

The inception of Vectra AI dates back to a pivotal moment in Hitesh Sheth’s career while he was COO at Aruba Networks. A customer came to him with alarming news: they had been hit by a sophisticated nation-state cyberattack that breached multiple companies. Despite having purchased top-tier security solutions during Sheth’s tenure at Juniper Networks, the breach had gone undetected.

This incident illuminated a glaring gap in traditional security approaches. Existing tools were ill-equipped to detect the subtle, stealthy techniques used by modern attackers. Sheth realized that a different approach was needed—one that could analyze network traffic in real time and identify attacks as they unfolded. The answer? Artificial intelligence.

However, in 2010, the technology landscape wasn’t ready to support such a revolutionary approach. It took a few more years of advancements in AI, machine learning, compute power, and storage costs for Sheth’s vision to take shape. By 2012, Sheth made the bold move of leaving his corporate role at Juniper Networks to found Vectra AI.

The Early Struggles and Breakthroughs

Convincing investors to back a radically new approach to cybersecurity wasn’t easy. Sheth faced skepticism from all sides, as AI was still seen as a buzzword rather than a practical solution. However, with determination and the backing of Khosla Ventures, Vectra AI was born.

The company’s mission was clear from day one: to make the world a safer place by developing AI-based solutions that detect and stop advanced cyberattacks in real-time. Vectra AI assembled a crack team of data scientists, security researchers, and software engineers who set out to develop what would become one of the most innovative platforms in cybersecurity.

The Vectra AI Platform

At the heart of Vectra AI’s success is its flagship product, the Vectra AI Platform. This groundbreaking solution uses AI-driven Attack Signal Intelligence to detect and respond to threats across a wide array of environments, including cloud, identity, Software-as-a-Service (SaaS), and network infrastructures. Vectra’s AI doesn’t just look for threats—it understands attacker behavior. Its behavior-based AI technology can detect subtle attacker techniques, prioritize threats based on their severity, and even predict the next move, allowing organizations to act swiftly.

The platform covers over 90% of the MITRE ATT&CK framework’s techniques, making it a comprehensive solution that SOC teams can rely on. It has also evolved to incorporate AI-assisted investigation capabilities using large language models (LLMs), helping analysts quickly investigate potential threats.

Key Milestones and Breakthroughs

Vectra AI’s innovation has led to an impressive portfolio of over 35 security patents, with 12 referenced in MITRE D3FEND, an industry framework for countering cyber threats. The company has continuously expanded its platform to stay ahead of evolving threats. Notably, in August 2023, Vectra launched an integrated hybrid attack detection and response platform that uses real-time Attack Signal Intelligence. This was followed by a May 2024 update, where Vectra expanded its platform to combat attacks leveraging Generative AI (GenAI) tools like Microsoft Copilot.

Funding, Growth, and Industry Recognition

Vectra AI’s relentless focus on innovation has paid off, both in terms of market growth and industry recognition. In April 2021, the company raised $130 million in funding, led by Blackstone Growth, bringing its total funding to over $350 million and pushing its valuation to $1.2 billion.

The company’s growth has been nothing short of meteoric, reporting triple-digit year-over-year growth in 2022. Today, Vectra AI protects over a thousand hybrid and multi-cloud enterprises, safeguarding more than 5 million workloads. Its 900+ employees operate globally to ensure organizations can stop advanced attacks before they become breaches.

Vectra has also been recognized as a leader in its field. The company was named the only Customers’ Choice in the 2024 Gartner Peer Insights Voice of the Customer for Network Detection and Response. In addition, it secured a place on Forbes AI 50 and has won numerous accolades, including “Best in AI-Based Cybersecurity” at the 2024 CybersecAsia Readers’ Choice Awards.

Tackling the Threats of the Future – GenAI

In the era of generative AI, Vectra AI is not just protecting organizations from traditional threats but is also combating new attack vectors introduced by tools like Microsoft Copilot. According to Jeff Reed, Vectra AI’s Chief Product Officer, over 40% of Vectra AI’s identity customers have started using Microsoft Copilot, and with this widespread adoption comes new security risks. Vectra has expanded its platform to detect and respond to threats posed by GenAI tools, using Attack Signal Intelligence™ to defend against attackers exploiting these innovations.

Sheth underscores this shift: “With more enterprises now using GenAI tools to boost productivity, SOC teams face a new attack surface, one that can only be protected with AI. Our mission is to ensure that we’re providing the same level of protection for AI-driven threats as we are for traditional attack surfaces.”

Sheth’s Vision for the Future

Hitesh Sheth’s leadership has been instrumental in shaping Vectra AI’s path. He emphasizes that building a strong company culture, focusing on customer success, and staying ahead of cybercriminals with continuous innovation is key to their long-term success. Sheth’s vision for Vectra AI is clear: as cyberattacks become more complex, only AI-driven solutions will be able to keep pace with attackers.

Sheth has often noted the “double-edged sword” of generative AI tools like ChatGPT. While these tools can greatly enhance productivity, they also introduce new attack vectors that hackers can exploit. Vectra AI is uniquely positioned to address this challenge by providing “AI-driven defenses to keep pace with AI-powered attacks.”

Expanding Partnerships and Capabilities

Vectra AI continues to expand its offerings and partnerships. In a significant move, the company launched the Vectra AI Clarity Program for Managed Security Service Providers (MSSPs) in 2024. This program aims to meet the growing demand for extended detection and response (XDR) solutions while providing MSSPs with customizable pricing options and premium support.

The company’s focus on hybrid enterprise environments has also driven its partnership with security leaders like CrowdStrike, enabling them to offer Managed Detection and Response (MDR) services to strengthen defenses for businesses across industries.

The Road Ahead

Looking forward, Vectra AI remains committed to innovation and customer-centricity. The company is doubling down on expanding its XDR capabilities and continues to focus on enhancing its AI-driven security platform to cover all attack surfaces, from network infrastructures to cloud environments. With a growing presence across regions like Asia Pacific and Japan, Vectra AI is set on becoming the global leader in cybersecurity.As Hitesh Sheth said, “Our mission is to provide the same detection responsibility we have for other attack surfaces but now also start protecting customers against the abuse of LLMs.”

📣 Want to advertise in AIM Research? Book here >

Picture of Anshika Mathews
Anshika Mathews
Anshika is the Senior Content Strategist for AIM Research. She holds a keen interest in technology and related policy-making and its impact on society. She can be reached at anshika.mathews@aimresearch.co
Subscribe to our Latest Insights
By clicking the “Continue” button, you are agreeing to the AIM Media Terms of Use and Privacy Policy.
Recognitions & Lists
Discover, Apply, and Contribute on Noteworthy Awards and Surveys from AIM
AIM Leaders Council
An invitation-only forum of senior executives in the Data Science and AI industry.
Stay Current with our In-Depth Insights
The Most Powerful Generative AI Conference for Enterprise Leaders and Startup Founders

Cypher 2024
21-22 Nov 2024, Santa Clara Convention Center, CA

25 July 2025 | 583 Park Avenue, New York
The Biggest Exclusive Gathering of CDOs & AI Leaders In United States
Our Latest Reports on AI Industry
Supercharge your top goals and objectives to reach new heights of success!