Physical AI security startup Exein raises $270M at $1.7B valuation

Italian cybersecurity firm Exein secured $270 million in funding, propelling its valuation to $1.7 billion. The investment round was described as significantly oversubscribed. The Rome-based company, founded in 2018, specializes in security for AI-driven machines, such as robots and vehicles. Previously valued at $700 million in December 2022 after raising €100 million, Exein has embedded its security software directly into the firmware of IoT devices to enable self-protection without network reliance.

Over 2 billion devices worldwide now use Exein's code, spanning sectors like automotive, energy, and robotics. Its latest offering, Photon, operates at the operating system kernel level to block malicious code before execution. Exein's installed base now encounters around 5,000 new attacks weekly, a fivefold increase from a year ago.

With frontier AI models accelerating the patch window to near-zero, Exein emphasizes the necessity of defense matching attack speeds. Leveraging two years of device telemetry, Exein is developing a proprietary foundation model for physical AI security. An agentic security architecture and the first foundation model are slated for release by the end of 2026 and first quarter of 2027, respectively.

Exein's revenue is predominantly sourced from the Asia-Pacific region, accounting for about half of its total earnings. The company reported a fourfold increase in annual recurring revenue during the first half of the year compared to the same period last year. Exein has established regional hubs in Taiwan, Japan, and is planning a South Korea office to open by 2027.

The U.S. has been identified as a priority market for the new funding, with an office set to launch in the Bay Area. The capital influx will fund acquisitions in Europe and the U.S. Additionally, Exein has expanded its revolving credit facility led by JPMorgan Chase & Co., and German state development bank KfW has joined as an additional lender.

Headline Management GmbH led the round, with additional backers including Headline Management GmbH, Sofina SA, Goldman Sachs Group Inc., the European Investment Bank Group, KfW Capital GmbH & Co. KG, and T.Capital. Existing investors such as Balderton Capital, HV Capital, Intrepid Growth Partners, 33N Ventures, Lakestar, Supernova Invest, Blue Cloud Ventures, and Geodesic Capital also participated in the funding.