Tonic Security, a cutting-edge cybersecurity startup, has announced the successful close of its $7 million seed funding round, positioning itself to transform how sensitive data is protected in cloud-native environments. The round was led by Hetz Ventures and Vesey Ventures, with additional backing from a group of seasoned angel investors.

Founded by cybersecurity veterans Sharon Isaaci, David Warshavski, and Gregory Ainbinder, Tonic Security is tackling one of the most urgent issues in modern IT infrastructure: protecting sensitive information across cloud applications, APIs, and development environments - without slowing down innovation.

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The Problem: Cloud Innovation Outpacing Security

As businesses shift faster than ever to the cloud, they are encountering a harsh reality: legacy security tools are failing to keep up with modern development velocity. Developers now ship code weekly - or even daily - yet security practices often lag behind, creating dangerous gaps in data visibility and control.

According to Gartner, over 60% of organizations will experience a cloud security breach by 2025 due to misconfigurations, overprivileged access, or insufficient data protection. Meanwhile, the average data breach cost has surged past $4.45 million, as reported by IBM’s 2023 Cost of a Data Breach Report.

Tonic Security aims to close this gap by making data protection as agile as DevOps.

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What Tonic Security Does

Tonic Security delivers a data-centric security platform built for the cloud-native era. Instead of relying solely on perimeter defenses or scattered policies, the company’s solution focuses on protecting what matters most: the data itself.

Key capabilities include:

• Automated data discovery across multi-cloud and SaaS environments
  
• Policy-based encryption and masking for sensitive fields
  
• Runtime data access monitoring via APIs and internal services
  
• Zero-friction deployment into CI/CD pipelines and dev environments
  

Tonic enables organizations to secure customer data, PII, and financial records without adding friction to the developer experience - preserving velocity while boosting compliance and risk posture. 

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Why This Raise Is a Signal for the Industry

This $7M seed round isn’t just a vote of confidence in Tonic - it’s a signal that founders and CISOs alike are rethinking what modern data security should look like.

The biggest insight for founders here? Data security is shifting from a compliance checkbox to a product-led differentiator. Customers today evaluate vendors based on how securely they manage and govern sensitive information. In regulated sectors like finance, healthcare, and e-commerce, this is no longer optional.

Founders who embed security deeply into their product DNA - from design to deployment - are not just reducing risk; they’re increasing buyer confidence, shortening sales cycles, and commanding better contracts. Tonic is enabling this by making enterprise-grade data security programmable, scalable, and invisible to the user experience. 

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How It Works: Security that Moves at Developer Speed

Unlike traditional solutions that require heavy configuration and months-long rollouts, Tonic is designed for fast, secure integration into modern environments. It fits naturally into DevSecOps workflows and supports:

• Declarative security policies via code
  
• API-based integration for real-time data flow monitoring
  
• No-code/low-code controls for security teams to configure access rules
  
• Detailed audit logs to satisfy compliance frameworks like SOC 2, HIPAA, and GDPR
  

This dual appeal - developer-first usability and enterprise-grade governance - makes Tonic especially attractive to fast-scaling tech companies with complex cloud architectures.

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The Market Opportunity

The data-centric security market is rapidly gaining momentum, projected to grow from $5.2 billion in 2023 to over $17 billion by 2028, according to MarketsandMarkets. This growth is fueled by:

• Increasing cloud adoption across all industries
  
• Rising frequency and cost of data breaches
  
• Tighter regulatory scrutiny across jurisdictions
  

As organizations adopt zero trust architectures and shift left on security, the demand for platforms like Tonic - ones that secure data without blocking workflows - is exploding.

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Meet the Founders

Tonic Security’s founding team brings decades of experience in cybersecurity, infrastructure, and enterprise IT:

• Sharon Isaaci – Cybersecurity leader with deep experience in data privacy and enterprise security
  
• David Warshavski – Veteran in cloud architecture and large-scale SaaS systems
  
• Gregory Ainbinder – Expert in software development and DevOps practices
  

Together, they’re building a platform that doesn’t just respond to breaches - but prevents them with precision and scalability.

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Backed by Top Investors

Leading this round are Hetz Ventures and Vesey Ventures, two firms known for identifying high-potential companies in cybersecurity and cloud infrastructure. Their involvement not only brings capital but also deep strategic and go-to-market expertise.

The round also includes contributions from notable angel investors with experience across security, enterprise SaaS, and cloud operations.

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What’s Next for Tonic Security?

With this seed funding, Tonic Security plans to:

• Expand engineering and product teams to accelerate feature development
  
• Build enterprise-grade integrations for AWS, GCP, Azure, and leading SaaS platforms
  
• Grow its GTM motion, focusing on fast-scaling B2B tech companies and highly regulated industries
  
• Launch a developer-centric community, providing education, open-source tools, and policy templates
  

As data security becomes a boardroom concern, Tonic aims to be the default solution for modern teams that need to move fast without sacrificing protection.

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