This verse begins with “therefore” meaning it is the conclusion of an argument presented in Hebrews 11. Chapter 11 is all about the faith of those ancient men and women who lived before Jesus was born. It records acts of faith of Abel, Enoch, Abraham, Sara, Noah, Jacob, Joseph, Moses, and many unnamed men and women who suffered for righteousness sake.
Hebrews 11:13, 32-34, 38-40 (NKJV),13 These all died in faith, not having received the promises, but having seen them afar off were assured of them, embraced them and confessed that they were strangers and pilgrims on the earth…And what more shall I say? …who through faith subdued kingdoms, worked righteousness, obtained promises, stopped the mouths of lions, quenched the violence of fire, escaped the edge of the sword, out of weakness were made strong,…They were stoned, they were sawn in two, were tempted, were slain with the sword. They wandered about in sheepskins and goatskins, being destitute, afflicted, tormented— of whom the world was not worthy…And all these, having obtained a good testimony through faith, did not receive the promise, God having provided something better for us, that they should not be made perfect apart from us.”
The cloud of witnesses is the testimony of the lives of these faithful people of the Old Testament. What promises did these ancient worthies embrace but did not receive? Hebrews 11:10, “For he (Abraham) looked for a city which hath foundations, whose builder and maker is God.” Symbolically, a city represents a government. The city whose builder is God is the New Jerusalem – the Kingdom of God. Those righteous martyrs believed God’s promises of the resurrection (Hebrews 11:19), the restoration of all things lost through the fall (Acts 3:21, Isaiah 35), and the Earthly peaceable kingdom to be ruled by Jesus and His church (Isaiah 11:1-12).
Just an added note: What is the “something better for us”? The saints will receive a heavenly resurrection with immortal, spirit bodies. Whereas, the ancient worthies will be resurrected with perfect human bodies when the New Jerusalem is established on Earth.