Prevalent AI raises first outside capital in nine years with $22M round

Cybersecurity data firm Prevalent AI has secured $22 million in growth capital, marking its first outside investment since its inception nine years ago. The company specializes in a data fabric that connects to numerous enterprise systems, consolidating the data into a knowledge graph that remains up-to-date. Security teams can use this graph to query and identify assets, controls, and identities across an organization, as well as detect which areas are not being monitored.

Prevalent AI positions their solution as "sovereign," allowing customers to determine where the underlying data is stored. Enterprises are currently allocating around $240 billion towards information security this year, a substantial portion of which is being spent on amassing more data rather than enhancing insights. Gartner Inc. has previously cautioned that agentic AI projects are experiencing failure at scale, with over 40% projected to be abandoned by the end of 2027 due to factors like cost, limited business value, and inadequate risk controls.

Prevalent AI's co-founder and CEO, Paul Stokes, highlighted that large enterprises possess an abundance of tools and data, but lack the necessary context. Security teams are tasked with making decisions across a multitude of systems, controls, and identities that were never intended to interoperate. The company's origins lie in security due to the potential damage caused by fragmented data.

Prevalent AI's clientele includes global banks, telecommunications providers, insurers, and critical infrastructure operators. One international bank reported an over 80% improvement in incident detection after implementing the platform, while a major insurer noted a 95% reduction in the time required to create executive security reports.

The company offers managed services to expedite customer adoption. Prevalent AI has been profitable since its first customer and has experienced a more than double increase in annual recurring revenue over the past year, as per the company's disclosure. The funding will be utilized to establish a formal global go-to-market organization, with sales, marketing, and customer success now under a unified structure.

Additionally, the company aims to expand its presence in the United States and broaden the application of the knowledge graph beyond security to encompass financial crime analysis, compliance, and wider operational risk. Integrity Growth Partners, based in Santa Monica, California, invested in Prevalent AI. Managed Partner Ryan Anderson emphasized the company's "truly unique, AI-native technology" that is relied upon by sophisticated enterprises while adhering to strict capital discipline. Anderson also noted that the rise of agentic AI intensifies the focus on data quality and depth.