HiddenLayer Raises $100M Series B to Advance Trustworthy AI

HiddenLayer, the most comprehensive security platform for AI, led by Chris Sestito, Tanner Burns, James Ballard, and the team, has announced a $100 million Series B funding round led by Delta-v Capital, with participation from Ten Eleven Ventures, Morgan Stanley, M12, Microsoft's Venture Fund, and Booz Allen Ventures.

The company will use the funding to expand its enterprise platform, including Agentic Runtime Security and Agent Harness Security, a new solution designed to secure AI coding agents at runtime as enterprises adopt autonomous coding agents.

"We set out to pioneer trusted, secure use of AI for enterprises, long before most organizations saw the urgency we do today. This funding lets us keep growing the purpose-built team and platform required to meet that moment as agentic AI becomes core to how enterprises operate,” said Chris Sestito, CEO and Co-Founder of HiddenLayer.

The raise follows a standout year, with HiddenLayer’s ARR growing more than 10x and 50+ new customers across financial services, government, technology, healthcare, and defense. The company also supports a leading frontier model provider serving more than 700 million weekly users.

Its research team holds 39 granted and 65 pending patents, has identified dozens of AI vulnerabilities, and developed the first comprehensive Adversarial Prompt Engineering Taxonomy. Researchers also contribute to CISA/JCDC, MITRE, NIST, OWASP, and OpenSSF.

"Traditional security tools were built for code and infrastructure, not for models that can be poisoned, hijacked, or manipulated through their own inputs,” said Dan Williams, Partner at Delta-v Capital. "HiddenLayer built a platform from the ground up to secure AI across its full lifecycle, from the model at its core to the agentic systems being layered on top and whatever architecture comes next. We’ve watched this team turn deep adversarial-AI research into a product CISOs actually rely on, and we're proud to partner with them."

The funding will help HiddenLayer strengthen security across three critical areas: AI agents operating in production, agentic harnesses, and autonomous coding agents. The platform provides runtime visibility and protection against manipulation, tool misuse, and unauthorized actions.

With 96% of organizations considering AI critical to core operations, but nearly a third unsure whether they have experienced an AI-related breach, HiddenLayer argues that AI trust must be continuously tested and proven at runtime.

“Enterprises don't shift budgets at this pace unless a problem is urgent. HiddenLayer's growth over the past year across defense, financial services, and some of the most sensitive AI deployments in the world demonstrates that security teams have concluded that AI needs its own category of protection,” said Mark Hatfield, Co-Founder and Partner at Ten Eleven Ventures. “We expect that conviction to continue to grow as autonomous systems become more and more integral to the enterprise."

“HiddenLayer was early to recognize that enterprise security is critical to the safe deployment of AI, and its buildout of an end-to-end platform to enable compliant AI adoption is an important contribution to addressing this market need,” said Zheng Wang, Head of Strategic Investments at Morgan Stanley. “We are delighted to be investing in HiddenLayer to foster its next phase of growth and innovation.”

HiddenLayer is also strengthening its leadership team, recently naming Mike Gesnaldo as Chief Revenue Officer. More hires are on the way as the company deepens its channel relationships, keeps pace with enterprise customer demand, and pushes further into international markets, beginning with Europe and the wider EMEA region.

𝐑𝐞𝐦𝐨𝐭𝐞 𝐇𝐢𝐫𝐞 𝐖𝐢𝐭𝐡 𝐔𝐬: 𝐌𝐞𝐧𝐥𝐨 𝐓𝐚𝐥𝐞𝐧𝐭 helps technology companies hire exceptional remote talent from India. Build your team with carefully curated engineers, product leaders, designers, GTM professionals, and more. Learn More At: https://www.menlotimes.com/menlo-talent