Echo Software Ltd. (“Echo”), the emerging leader in AI-powered secure software infrastructure, has announced a rapid and highly successful funding trajectory, raising $50 million in just ten months. The latest injection is a $35 million Series A round, following a $15 million seed round announced only four months prior. This substantial backing validates Echo’s innovative approach to neutralizing security threats at the foundational layer of cloud applications.
The Series A round was spearheaded by N47, the prominent investment firm, with significant participation from Notable Capital, Hyperwise Ventures, and SentinelOne’s S Ventures. The company, which is already securing production workloads for major enterprise customers like Varonis, EDB (Emirates Development Bank, using the most relevant enterprise-focused EDB site), and UiPath, is effectively redefining container security.
Eliminating Vulnerabilities at the Source
Echo addresses a systemic crisis in cloud security: the vast majority of application vulnerabilities originate not from application code, but from the container base images (like Python or Node.js) upon which all modern cloud services are built. These official open-source images often contain over 1,000 known vulnerabilities (CVEs), exposing companies to millions of inherited security issues before coding even begins.
Eylam Milner, Co-Founder and CTO of Echo, explained the severity of the issue: “Studies consistently show that more than 90% of container vulnerabilities originate from the base image layer rather than application code. This means enterprises with thousands of cloud services inherit millions of security issues before their engineers write a single line of code.”
Echo solves this by reconstructing container base images from scratch, using only essential components to eliminate vulnerabilities at the source. This is enabled by purpose-built AI agents that autonomously create and maintain these secure, CVE-free hardened images. These AI agents research new vulnerabilities, identify affected images, develop fixes, and apply patches automatically—a task that would require hundreds of engineers using manual methods.
Echo was co-founded by Eilon Elhadad (CEO) and Eylam Milner (CTO), both distinguished veterans of Israel’s elite 8200 technology unit. Their previous software supply chain security company, Argon, was successfully acquired for $100 million after just one year, highlighting their deep expertise in the sector.
Moshe Zilberstein, General Partner at N47, underscored the market need: “AI agents now write more code than humans, while bad actors use AI to compress exploit windows from weeks down to hours. This AI-versus-AI arms race makes manual vulnerability management obsolete. Echo is building what every Fortune 1000 company needs: an AI-native OS that’s secure-by-design.”
📰 Editorial View: The Dawn of Secure-by-Design Infrastructure
The velocity of Echo Software Ltd.‘s funding—$50 million in under a year—is a direct reflection of the market’s realization that conventional cloud security, which largely focuses on detecting and patching vulnerabilities after they are introduced, is fundamentally broken. Echo is not offering a better scanner; it is proposing a paradigm shift by delivering a Secure-by-Design operating system tailored for the cloud.
This model, leveraging AI to construct CVE-free base images, is the only viable long-term strategy for winning the AI-versus-AI arms race described by investors. The traditional security industry’s manual, reactive patching model cannot compete with the speed and scale of modern generative AI, which rapidly introduces new code and exploits. By automating the arduous process of rebuilding and hardening base images from scratch, Echo transforms a massive, inherited security burden into an operational advantage for its clients. The co-founders’ proven track record from the successful exit of their previous company, Argon, provides immediate credibility and confidence in their technical execution and market strategy.
We view Echo as an essential infrastructure layer for the next decade of cloud computing. As enterprises increasingly rely on containers and microservices, the integrity of the foundational base image becomes the single most important control point. By ensuring this foundation is secure and maintained autonomously by AI, Echo not only mitigates immense risk but also frees development and security teams to focus on innovation. This is a crucial step toward realizing a truly automated and trustworthy software supply chain globally.
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