Key facts
- HiddenLayer has raised $100 million in a Series B funding round.
- The company protects AI models, agents, and workflows from adversarial attacks.
- HiddenLayer's annual recurring revenue has grown more than 10x in the past year.
- Gartner estimates companies will spend $2.83 billion this year on AI security products.
- The Series B round was led by Delta-v Capital.
AI security startup HiddenLayer has secured $100 million in a Series B funding round, signaling strong enterprise demand for solutions to protect artificial intelligence deployments. The company, which develops tools to safeguard AI models, agents, and workflows from adversarial attacks and malicious code, reported a more than tenfold increase in annual recurring revenue over the past year, with over 90% of that growth attributed to new customers.
The surge in funding and growth reflects a rapidly expanding market for AI security. Gartner projects that companies will spend $2.83 billion on AI security products this year, an 83% increase from 2025, and anticipates this figure to climb to nearly $4.78 billion next year.
HiddenLayer's co-founder and CEO, Chris Sestito, stated that the company has expanded its product scope from traditional machine learning to generative AI and agentic workflows, focusing on areas like prompt injection, agent manipulation, and the security of open-source models. The new capital will be used to bolster sales, distribution, engineering, and research efforts, with plans for international expansion into Europe and EMEA.
The Series B round was led by Delta-v Capital, with significant participation from investors including Ten Eleven Ventures, Morgan Stanley, and Microsoft's M12. This funding positions HiddenLayer to compete in a market where large cybersecurity firms often acquire specialized technology, and other startups are also raising substantial capital.