New York, May 22, 2023 — PointFive, a cloud cost optimization startup, today emerged from stealth mode with $16 million in seed funding to build the first platform purpose-built for deep waste detection in cloud infrastructure.
Funding Round Details
The seed round was led by Index Ventures, with participation from Entree Capital, Sheva VC, and Vesey Ventures. The round also attracted notable angel investors from across the cybersecurity and cloud infrastructure landscape, underscoring strong industry confidence in the company's approach.
The Deep Waste Problem
PointFive was founded on a critical insight: existing FinOps tools and cloud cost management solutions only catch surface-level waste, addressing roughly 15-20% of total inefficiencies. The remaining 80% of cloud waste sits buried deep within infrastructure configurations, networking layers, and resource provisioning patterns — invisible to conventional tooling.
CEO and co-founder Yoav Toussia-Cohen explained that the company set out to solve the gap between what organizations think they are wasting and what they are actually wasting, noting that the delta is significant enough to reshape how companies think about cloud spending.
Founding Team
PointFive was co-founded by Yoav Toussia-Cohen (CEO) and a team of engineers with deep expertise in cloud infrastructure and cybersecurity research. The founding team brings experience from leading Israeli technology companies and military intelligence units, applying cyber-grade analytical methodologies to the challenge of cloud cost optimization.
Vision for Autonomous Optimization
The company's platform applies advanced AI models and cyber intelligence-inspired research to analyze cloud environments at a granular level, uncovering inefficiencies that traditional tools miss. PointFive's long-term vision is to deliver fully autonomous cloud optimization — continuously scanning, identifying, and remediating waste without disrupting engineering workflows.
Market Opportunity
Global cloud infrastructure spending continues to accelerate, yet industry estimates suggest that 30-40% of cloud spend is wasted. PointFive aims to capture this opportunity by providing engineering teams with actionable, high-confidence optimization recommendations that go far beyond basic rightsizing and reserved instance suggestions.
About PointFive
PointFive specializes in cloud cost optimization and waste identification using its proprietary DeepWaste Detection Engine, built on cyber-inspired methodologies and advanced AI. The platform is designed to bridge the gap between FinOps visibility and engineering action, transforming cloud cost optimization from a reactive exercise into a continuous, proactive strategy.