Austin-based HiddenLayer has raised $100 million in a Series B round to bolster security for agentic and generative AI applications, bringing its total funding to over $155 million.

  • HiddenLayer raised $100 million in its Series B funding round.
  • Total funding raised to date exceeds $155 million.
  • Funds will target 'agentic runtime security' for AI coding agents.
  • Investment led by Delta-v Capital with support from Microsoft M12 and Morgan Stanley.

In a significant boost to the cybersecurity sector, HiddenLayer, an Austin-based AI security specialist, announced on Wednesday that it has successfully raised $100 million in a Series B funding round. This latest injection of capital brings the company's total funding to more than $155 million.

Founded in 2022, HiddenLayer focuses on securing the entire lifecycle of agentic, generative, and predictive AI applications. As enterprises move toward integrating autonomous agents into their core workflows, the company aims to protect these systems from increasingly sophisticated and evolving cyber threats.

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Why This Matters

The company's enterprise platform is designed to provide discovery, AI supply chain security, attack simulation, and runtime protection. The primary goal is to ensure compliance, facilitate safe AI adoption, and protect intellectual property.

BozokMedia analysis shows that the industry is shifting from securing static data to securing active, decision-making agents. The new funds will be specifically directed toward expanding agentic runtime security capabilities, with a heavy focus on AI coding agents—autonomous systems that can write, review, and deploy code with minimal human oversight.

"We set out to pioneer trusted, secure use of AI for enterprises, long before most organizations saw the urgency we do today," said HiddenLayer co-founder and CEO Chris Sestito.

The investment round was spearheaded by Delta-v Capital, with significant participation from Microsoft’s Venture Fund M12, Morgan Stanley, Booz Allen Ventures, and Ten Eleven Ventures.

Historical Background: The Evolution of AI Threats

Early AI security focused primarily on protecting the training data and the models themselves. However, as the industry shifts toward 'Agentic AI'—where AI can take actions in a digital environment—the threat landscape has expanded to include unauthorized actions, manipulation, and misuse of autonomous agents in real-time production environments.

Did You Know?: AI coding agents are becoming so proficient that they can now perform complex software engineering tasks, making their security as critical as human developer access.

Frequently Asked Questions

1. What is 'Agentic Runtime Security'?
It refers to the real-time monitoring and protection of AI agents while they are actively performing tasks, ensuring they do not deviate from intended behaviors or fall victim to manipulation.

2. Who are the major investors in HiddenLayer?
Key investors include Delta-v Capital, Microsoft's M12, Morgan Stanley, and Booz Allen Ventures.