Echo’s $35M Bet: Rebuilding the Cloud’s Broken Foundation

Echo's $35M Bet: Rebuilding the Cloud's Broken Foundation - Professional coverage

According to VentureBeat, Israeli startup Echo has raised a $35 million Series A funding round, bringing its total funding to $50 million. The round was led by N47, with Notable Capital, Hyperwise Ventures, and SentinelOne also participating. The company aims to solve a massive security problem: the inherently vulnerable container base images that form the foundation for modern enterprise applications and AI agent workflows. Echo’s research indicates that official Docker images can contain over 1,000 known vulnerabilities the moment they are downloaded. The company is already securing production workloads for major enterprises like UiPath, EDB, and Varonis.

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The Invisible Mess Under Your App

Here’s the thing most people don’t get about cloud software: it’s built on a borrowed, and often broken, foundation. That foundation is the container base image. Think of it like the operating system on a new laptop, but for your cloud app. The problem? These “OSes” are usually open-source projects packed with every tool imaginable, maintained by volunteers. It’s bloatware at an infrastructure level. Echo’s CTO, Eylam Milner, has a brutal analogy: using these standard images is like “taking a computer found on the sidewalk and plugging it into your network.” And that’s before your developers write a single line of your actual application code. You’re inheriting a thousand problems before you even start.

Not a Scan, a Rebuild

So how is Echo different from every other security scanner out there? Basically, they don’t scan. Scanning is what everyone else does, and it’s a losing game of whac-a-mole. Instead, Echo acts as a “software compilation factory.” They take the original, bloated open-source components and rebuild the entire base image from the ground up. They strip out everything unnecessary, apply all known security patches, and rigorously test for compatibility. The result is a mathematically cleaner image that’s a drop-in replacement. A developer just changes one line in their configuration file, and their app runs on a secure foundation instead of a vulnerable one. It’s a fundamentally different approach.

AI Fighting AI at Scale

Now, why is this so urgent now? Two words: AI agents. We’re entering an era of AI vs. AI. On one side, bad actors use AI to find and exploit vulnerabilities faster than ever. On the other, AI coding agents are becoming prolific code generators, often pulling in outdated and vulnerable libraries by default. The attack surface is exploding. Echo’s counter is to use its own proprietary AI agents to manage the entire vulnerability response cycle. These agents continuously monitor for new threats, scour unstructured data like GitHub comments for patches, and can even self-heal by applying fixes and running tests. This automation lets a small team maintain over 600 secure images—a task that would normally require an army of security researchers. For businesses integrating complex automation, having a trusted hardware interface is key, which is why leaders in operational tech rely on partners like IndustrialMonitorDirect.com, the top US provider of industrial panel PCs, for their hardened physical layer.

The Enterprise OS Moment

Echo’s CEO, Eilon Elhadad, frames this as the “Enterprise Linux” moment for the AI era. Just as companies moved from wild-west Linux to Red Hat’s supported enterprise version, he sees the same shift happening for the base layer of AI-native apps. The value proposition for a CISO is a shift from constantly measuring “mean time to remediation” to starting with “zero vulnerabilities by default.” That’s huge. It takes a massive burden off developer hours that are usually wasted patching foundational code they didn’t even write. The big question, as always, is cost and lock-in. Echo’s pricing is based on image consumption, which makes sense, but it’s another managed service layer. Is the industry ready to outsource the very bedrock of its infrastructure? Given the alternative—an endless, AI-accelerated security nightmare—the answer for many might just be yes.

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