AI security startup HiddenLayer has raised a new $100 million Series B as demand accelerates for tools that protect enterprise AI systems. The round was led by Delta-v Capital, with support from Ten Eleven Ventures, Morgan Stanley, Microsoft's M12, Booz Allen Hamilton and other investors.
The Austin-based company focuses on defending AI models, agents and workflows against adversarial attacks, malicious code injections and misuse of connected tools. Over the past year, HiddenLayer says its annual recurring revenue has increased more than tenfold, driven largely by new customers across financial services and large technology firms.
According to the company, its platform has also gained traction in highly regulated environments, including work with the Department of Defense and the intelligence community. HiddenLayer's latest products extend its existing capabilities into prompt injection defense, agent monitoring and supply-chain security for AI systems.
CEO Chris Sestito says the company is now broadening its scope from traditional machine learning protection to generative AI and agentic workflows. A major focus is runtime security, which aims to monitor AI behavior while systems are actively in use, similar in concept to endpoint protection in classic cybersecurity.
The startup is also investing in scanning open-source and open-weight model files to verify that what teams deploy matches what they expect. With the new funding, HiddenLayer plans to strengthen engineering and research while expanding sales and distribution, including a push into Europe and the EMEA region.
As AI becomes more embedded in business operations, security layers like these may become a standard part of digital infrastructure, shaping a safer and more scalable AI-driven future.
