Arpio Raises $15 Million to Advance AI-Native Automated Recovery Platform for Cloud Environments

DURHAM, N.C.--(BUSINESS WIRE)--Arpio, an AI-native recovery and resilience platform for cloud environments, today announced the close of a $15 million Series A financing co-led by S3 Ventures and Paladin Capital Group, with participation from Draper Associates, Uncorrelated, Valor Ventures, CreativeCo Capital, and Lookout Ventures. As cyberattacks, cloud disruptions, and infrastructure failures become more frequent, Arpio enables enterprises to rapidly recover its critical systems from ransomware, outages, and other disruptive events in minutes rather than days, and validate resilience before incidents occur.

The new capital will support continued expansion of Arpio’s recovery and cyber resilience platform, deepening capabilities across AWS and Microsoft Azure while expanding support to Google Cloud and other AI-native services.

Founded in 2020 by Doug Neumann and Shaw Terwilliger, Arpio was designed from the ground up to provide native recovery for cloud applications. The platform enables enterprises to automate disaster recovery and rapidly restore operations following ransomware, cloud provider outages, accidental errors, destructive attacks, and failures across increasingly complex AI-native environments.

“Over the last decade, we’ve seen cloud-hosted applications become an integral part of every facet of life and business. Ensuring that when disaster strikes, there is a plan to rapidly recover that workload and take downtime from days and weeks to hours and minutes has never been more important,” said Doug Neumann, CEO of Arpio. “This funding will allow us to expand our market presence among AWS & Azure customers, bring critical new capabilities into the platform including our AI roadmap, and grow our world-class team to advance our cloud resilience mission.”

In addition to supporting automated recovery when incidents occur, Arpio enables organizations to automate end-to-end failover testing to validate that recovery plans will work when needed. Testing can be performed without production impact, eliminating what has historically been a painful, manual process. As cyber resilience expectations continue to rise from customers, regulators, and boards, enterprises face growing pressure to demonstrate recoverability and prove business continuity before incidents occur.

“Ransomware has permanently raised the bar for resilience. It's no longer enough for a workload to come back. Recovery has to be automated, near instantaneous, and trusted, and legacy disaster recovery tools simply can’t do that,” said Tom Clute, a Principal at Paladin Capital Group. “Nearly every day brings another headline about an organization that couldn’t recover when it mattered most. Arpio is one of the few cloud-native platforms built from day one for this challenge, combining AI, automation and continuous testing so enterprises can prove recovery works before they need it.”

“As each day passes, AI technologies are increasing the vulnerability of cloud workloads—from both external threats and internal errors. It’s not a matter of if, but when an enterprise has downtime for critical services. At that crucial moment, enterprises using Arpio will be the best at responding quickly and seamlessly—thereby avoiding the financial and reputational damage suffered by peers who are slower to recover from such incidents,” said Eric Engineer, General Partner at S3 Ventures.

About Arpio

Arpio provides cloud-native disaster recovery automation for organizations running complex cloud environments. Built for the cloud by cloud experts, Arpio enables enterprises to replicate, test, and recover their cloud workloads automatically — eliminating the manual complexity and operational risk of legacy DR approaches. Arpio customers can validate their recovery capabilities in minutes, outside of maintenance windows, and trust that their DR environment will perform when it matters most. For more information, visit arpio.io.

About S3 Ventures

Founded in 2005, S3 Ventures is the largest and longest-serving venture capital firm born in Texas and investing nationwide. Backed by a philanthropic family with a multi-billion-dollar foundation, we empower visionary founders with the patient capital and true resources required to grow extraordinary, high-impact companies in Business Software and Healthcare Technology. With over $1B in assets under management, we lead Seed, Series A, and Series B rounds—with initial investments ranging from $500K to $15M and the capacity to invest $25M over the life of a company. Learn more at www.s3vc.com.

About Paladin Capital Group

Paladin Capital Group was founded in 2001 and has offices in Washington DC, New York, London, Luxembourg, and Silicon Valley. As a multi-stage investor, Paladin’s core strength is identifying, supporting and investing in innovative companies that develop promising, early-stage technologies to address the critical cyber, AI, and advanced technological needs of both commercial and government customers. Combining proven investment experience with deep expertise in global security, cyber technology and cutting-edge research, Paladin has invested in more than 85 companies since 2008 and has been a trusted partner to investors, entrepreneurs and governments for over two decades. For more on Paladin Capital Group, follow us on LinkedIn or visit our website.