The Austin-based artificial intelligence cybersecurity company, HiddenLayer, raised $100 million in a Series B funding round with Delta-v Capital leading the round, along with Ten Eleven Ventures, Morgan Stanley, Microsoft’s M12 and Booz Allen Ventures. The company plans to deploy the capital to advance its enterprise security platform, focusing heavily on Agentic Runtime Security and its new Agent Harness Security solution designed to protect autonomous AI coding agents at runtime. “We set out to pioneer trusted, secure use of AI for enterprises, long before most organizations saw the urgency we do today. This funding lets us keep growing the purpose-built team and platform required to meet that moment as agentic AI becomes core to how enterprises operate,” said Chris Sestito, CEO and Co-Founder of HiddenLayer. The funding round follows rapid commercial momentum, highlighted by a 10x surge in annual recurring revenue and over 50 major enterprise client wins spanning defense, financial services, and pharmaceuticals.
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“Traditional security tools were built for code and infrastructure, not for models that can be poisoned, hijacked, or manipulated through their own inputs,” said Dan Williams, Partner at Delta-v Capital. Echoing the growing demand, Mark Hatfield, Co-Founder and Partner at Ten Eleven Ventures, noted, “Enterprises don’t shift budgets at this pace unless a problem is urgent. HiddenLayer’s growth over the past year across defense, financial services, and some of the most sensitive AI deployments in the world demonstrates that security teams have concluded that AI needs its own category of protection.” Positioned at the intersection of AI risk management and compliance, Zheng Wang, Head of Strategic Investments at Morgan Stanley, added, “HiddenLayer was early to recognize that enterprise security is critical to the safe deployment of AI, and its buildout of an end-to-end platform to enable compliant AI adoption is an important contribution to addressing this market need.” Beyond product development, HiddenLayer is accelerating its global commercial strategy, appointing Mike Gesnaldo as Chief Revenue Officer to drive enterprise expansion across Europe and the broader EMEA region.
