HiddenLayer, an AI security startup, has raised $100 million in a Series B funding round led by Delta-v Capital, with participation from several other investors. This follows a significant growth in the company’s annual recurring revenue (ARR), which has increased more than tenfold over the past year, now reaching the “tens of millions” of dollars, according to co-founder and CEO Chris Sestito. The surge in revenue is primarily driven by new customer acquisitions, with financial services, large technology companies, and government entities such as the Department of Defense and intelligence community among its clients.

The funding will be utilized to expand HiddenLayer’s product scope to address emerging threats in AI deployments, including prompt injection, agent manipulation, and malicious tool use. While the company’s core offerings—discovery, runtime protection, attack simulation, and supply chain security—remain relevant, Sestito emphasizes the growing importance of runtime security for AI, likening it to traditional endpoint detection and response (EDR) solutions. Additionally, HiddenLayer plans to enhance its capabilities in parsing and scanning AI file frameworks to detect discrepancies in open-source models, as well as to bolster sales and distribution efforts while expanding into Europe and the EMEA region.

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