Observed Signal · Sep 2, 2026 · Funding · Source: techcrunch · Impact: 3/5 · Sentiment: Positive
HiddenLayer raises $100M for enterprise AI security
AI security startup HiddenLayer has raised $100 million in a Series B round led by Delta-v Capital, with participation from Ten Eleven Ventures, Morgan Stanley, Microsoft's M12, and Booz Allen Hamilton. The Austin-based company protects AI models, agents, and workflows from adversarial attacks, vulnerabilities, and malicious code injections. CEO Chris Sestito said annual recurring revenue grew more than 10x over the past year and now stands in the 'tens of millions' of dollars, with over 90% of growth driven by new customers. HiddenLayer has expanded its product scope from traditional machine learning to generative AI and agentic systems, addressing prompt injection, agent manipulation, and malicious tool use. Gartner estimates companies will spend $2.83 billion on AI security products in 2026 and nearly $4.78 billion in 2027. The new capital will support sales, distribution, engineering, and expansion into Europe and EMEA.
A $100M Series B for a leading AI security vendor highlights the fast-growing market for securing AI and agentic deployments, which underpins increasingly AI-driven advertising and marketing infrastructure.
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Key Takeaways & Evidence Grounding
- HiddenLayer raised $100 million in a Series B funding round led by Delta-v Capital.
- Participants included Ten Eleven Ventures, Morgan Stanley, Microsoft's M12, and Booz Allen Hamilton.
- HiddenLayer's annual recurring revenue grew more than 10x over the past year and is now in the tens of millions of dollars.
- Gartner forecasts AI security spending will reach $2.83 billion in 2026 and nearly $4.78 billion in 2027.
- HiddenLayer plans to expand into Europe and EMEA with the new funding.
Connected Companies & Entities
8 Entities mapped“The startup has now raised $100 million in a Series B funding round that was led by Delta-v Capital, with participation from Ten Eleven Vent...”
“The startup has now raised $100 million in a Series B funding round that was led by Delta-v Capital, with participation from Ten Eleven Vent...”
“The startup has now raised $100 million in a Series B funding round that was led by Delta-v Capital, with participation from Ten Eleven Vent...”
“Gartner estimates companies will spend $2.83 billion this year on products meant to secure AI tools, 83% more than 2025, and expects spendin...”
“Large cybersecurity companies, like Cisco, Palo Alto Networks, and Check Point often prefer to buy rather than build this sort of tech.”
“Large cybersecurity companies, like Cisco, Palo Alto Networks, and Check Point often prefer to buy rather than build this sort of tech.”
“Sestito acknowledged that some parts of the AI security products his company offers could eventually be bundled into the platforms built by ...”
“Sestito acknowledged that some parts of the AI security products his company offers could eventually be bundled into the platforms built by ...”
Ontology Mapping & Concepts
Related Market Signals & Shifts
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Why We Invested in HiddenLayer
Delta-v Capital announces a new investment in HiddenLayer, a cybersecurity company, as detailed in a new blog post by Dan Williams, Connor Heard, and Nikki Shah.
StrongestLayer Raises $4.1M, Total Seed $9.3M
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AIR raises $50M to vet AI agent skills and add-ons
AI security startup AIR emerged from stealth with $50 million in seed funding across two rounds. The company offers a platform that discovers AI agents running inside enterprises, continuously vets the skills, plug-ins, and MCP servers they use, and blocks those that fail security criteria. The first round of $10 million was led by Sequoia, the second of $40 million by Greenoaks, with participation from Swish, Netz, and several angel investors. AIR claims over 20 customers, including large enterprises in regulated industries like financial services and pharmaceuticals. The funding will be used for hiring researchers and expanding go-to-market efforts in the U.S. and Europe.
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