AI security startup HiddenLayer closed a $100 million Series B led by Delta-v Capital, with Ten Eleven Ventures, Morgan Stanley, Microsoft’s M12, Booz Allen Hamilton, and others participating. CEO Chris Sestito told TechCrunch ARR grew more than 10× in a year into the tens of millions, with financial services, big tech builders, and U.S. defense/intelligence among customers — including what he described as a frontier lab with 700M+ weekly users.
The product line still centers discovery, runtime protection, attack simulation, and supply-chain scanning, now extended for prompt injection, agent manipulation, malicious tool use, and open-weight model file inspection across dozens of formats. Gartner’s estimate of a fast-growing AI security market is the backdrop; Cisco/Palo Alto-style acquirers and well-funded rivals are the competitive weather. HiddenLayer’s bet: runtime “EDR for AI” stays a specialist layer even as clouds add basic governance.