As AI security concerns rise, HiddenLayer raises $100M and Huskeys bags $27M

Artificial intelligence security startup HiddenLayer Inc. recently secured a $100 million Series B funding round, while edge security company Huskeys Security Ltd. received a $27 million Series A investment. HiddenLayer, founded in 2022, specializes in checking models and their dependencies for tampering before deployment and monitoring live systems for prompt injection and model theft.

Over 50 new platform customers joined in the past year, with annual recurring revenue growing tenfold, now reaching the tens of millions of dollars. The company's CEO and co-founder, Chris Sestito, stated that they aimed to secure enterprise AI long before others recognized its urgency. The new capital will be used to expand their Agentic Runtime Security line and develop Agent Harness Security for autonomous coding agents. HiddenLayer has raised around $156 million in total, including a $6 million seed round.

Huskeys, founded in 2025 by Itai Gafni and Roy Weisfeld, both from Unit 8200, the Israeli military's signals intelligence arm, offers a solution that reads the configurations of existing security tools and provides posture assessment, policy generation, and virtual patching. The company processes over a trillion web requests per day across its customer base.

Notable customers include TikTok, Hugging Face, Legoland, and telehealth provider Ro. Blackstone Innovations Investments led the Series A round, with support from Merlin Ventures, Skinos Ventures, Zscaler Ventures, Okta Ventures, Bright Pixel Capital, and SV Angel. Eran Reshef, known as the inventor of the web application firewall, is also an angel investor. The funding brings Huskeys' total raised capital to $35 million.