Enterprise spending on cloud services continues to rise steadily, reaching $675 billion this year. This growth is driven by organizations’ increasing adoption of software-as-a-service, the surge in distributed work, and the emergence of compute-intensive technologies like AI.
A startup called PointFive claims to have a better solution for managing cloud usage. Recently, it secured $20 million in funding from a notable group of investors to position itself strongly in the market.
The Series A round is led by new investor Salesforce Ventures, along with participation from Index Ventures, Entree Capital, Sheva VC, and Vesey Ventures. Despite being headquartered in New York, PointFive was founded in Israel and boasts a lineup of angel investors who have already tread a similar path in the tech industry.
This funding round stands out for how swiftly it followed the seed round. Founded just 18 months ago, PointFive raised $16 million in June 2024, bringing its total funding to $36 million. The company’s valuation now sits around $100 million.
One noteworthy angel investor, Shachar, is known for developing a cloud cost optimization tool called Spot, which he later sold to NetApp before founding the cloud security firm Upwind. On the other hand, PointFive’s CEO and co-founder, Alon Arvatz, previously founded a security startup called IntSights, which he later sold to Rapid7 for $350 million.
PointFive’s focus on cloud security and cost control is rooted in the realization that these two aspects are closely interconnected. Both require a deep understanding of usage data across various instances, applications, and endpoints. This realization sparked the creation of PointFive, aiming to address this challenge effectively.
One key innovation by PointFive is its ability to offer a comprehensive solution that covers multiple cloud platforms and services. Traditional cloud optimization tools focused on a single platform, like AWS, which didn’t account for modern hybrid cloud architectures used by most organizations. PointFive’s technology addresses this gap by offering a holistic view of cloud infrastructure and Kubernetes clusters within minutes.
Furthermore, PointFive’s research team has developed AI algorithms to identify what the company refers to as “Deep Waste” in cloud environments. This entails recognizing inefficiencies and unused resources that are difficult to pinpoint through conventional means. This capability is crucial in areas like AI where compute resources are limited and expensive.
Salesforce Ventures leading this funding round is significant. As a prominent player in the SaaS industry, Salesforce can leverage PointFive’s solutions to enhance its offerings and empower its customers. Given Salesforce’s expansion into various cloud apps beyond sales and marketing, an interest in cloud management and security seems logical for its future growth.
“We are excited to support the acceleration of PointFive’s platform and anticipate the value they will deliver to customers through multi-cloud coverage,” stated Nowi Kallen, managing director at Salesforce Ventures.
