AI security startup HiddenLayer has raised $100 million in a Series B funding round led by Delta-v Capital, with participation from Ten Eleven Ventures, Morgan Stanley, Microsoft's M12, Booz Allen Hamilton and others.
The Austin-based company makes tools to protect AI models, agents and workflows from adversarial attacks, vulnerabilities and malicious code injections. Its co-founder and CEO, Chris Sestito, said annual recurring revenue grew more than 10x over the past year, though he declined to give an exact figure, saying ARR is now in the 'tens of millions' of dollars.
Financial services and large tech companies are its largest customer verticals, and it also has contracts with the Department of Defense and intelligence community. One customer is described as a 'leading frontier model provider' with 'more than 700 million weekly users.'
The company has extended its products to address prompt injection, agent manipulation and malicious tool use. Sestito said runtime security has become a priority as AI deployments grow, comparing it to endpoint detection and response for AI.
The new funding will be used to expand sales and distribution, continue growing engineering and research, and expand into Europe and EMEA.