Obsidian Security, a pioneer in SaaS Security and Posture Management, has raised $90 million in a Series C funding round. The investment was co-led by Menlo Ventures, Norwest Venture Partners, and IVP, with continued backing from existing investors including Greylock, Wing, and GV. This latest round brings the company’s total funding to $119.5 million. As part of the deal, Menlo Ventures Partner Venky Ganesan will join Obsidian’s board of directors.

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Founded in 2017, Obsidian Security was established to help IT and security teams close the compliance and protection gaps created by widespread adoption of SaaS platforms. With organizations increasingly relying on applications such as Salesforce, Workday, GitHub, Google Workspace, Microsoft 365, ServiceNow, and Zoom, the need for strong SaaS protection has grown dramatically—especially during the pandemic when enterprises scaled their cloud app usage rapidly. On average, enterprises with over 1,000 employees now run more than 150 SaaS applications, leaving them vulnerable to misconfigurations, insider threats, and external attacks.

This growing demand fueled record growth for Obsidian, which saw a fivefold increase in deals exceeding $100,000 in 2021 alone.

“Enterprises have spent years focusing on securing cloud infrastructure and endpoints, but the real risks lie in the SaaS layer where users, data, and core business operations reside,” said Venky Ganesan, Partner at Menlo Ventures. “CISOs and CIOs recognize that legacy tools are falling short. Obsidian’s comprehensive approach positions it as the company to set the standard for SaaS security.”

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Obsidian’s platform addresses these gaps by analyzing SaaS state and activity data across applications, enabling organizations to minimize over-privilege, optimize configurations, safeguard sensitive information, and detect compromised or insider accounts. This capability has become critical, with Microsoft estimating that 80% of employees regularly use applications outside their company’s compliance policies. The challenge is further compounded by the thousands of integrations and plugins attached to major SaaS tools.

“There has never been a unified, contextual platform to secure third-party SaaS applications until Obsidian,” said Hasan Iman, CEO of Obsidian Security. “We’re not just helping teams identify threats and improve posture—we’re aligning application vendors, business leaders, and IT teams into a shared model of responsibility for SaaS security. Recent breaches, like the one at Okta, highlight why this mission is so critical. We’re proud to have strong investment partners supporting our vision.”

1. How much funding did Obsidian Security raise in its Series C round?

Obsidian Security raised $90 million in its Series C, co-led by Menlo Ventures, Norwest Venture Partners, and IVP, bringing total funding to $119.5 million.

2. What is the purpose of the new funding?

The investment will help Obsidian expand its SaaS Security and Posture Management platform, accelerate product development, and scale operations to address growing enterprise SaaS security demands.

3. Why is SaaS security increasingly important for enterprises?

Organizations now run hundreds of SaaS applications, exposing them to misconfigurations, insider threats, and external attacks. Traditional cloud and endpoint security tools do not fully protect this critical layer.

4. How does Obsidian’s platform help enterprises secure SaaS environments?

Obsidian analyzes SaaS activity and state data to minimize over-privileged access, optimize configurations, detect insider threats, and safeguard sensitive information across applications such as Salesforce, Workday, Microsoft 365, and Zoom.

5. Who is joining Obsidian’s board as part of the Series C investment?

Venky Ganesan, Partner at Menlo Ventures, will join Obsidian Security’s board of directors, bringing strategic guidance as the company scales its SaaS security solutions globally.

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