HiddenLayer Secures $100 Million to Shore Up AI Defenses

The funding round, led by Delta-v Capital with participation from heavyweights including Microsoft’s M12, Morgan Stanley, and Ten Eleven Ventures, follows a period of rapid expansion for the company. HiddenLayer reported a tenfold increase in annual recurring revenue over the past year, securing contracts with major players in the defense, finance, and pharmaceutical sectors. The company currently monitors systems supporting more than 700 million weekly users, positioning itself as a primary gatekeeper for organizations struggling to secure AI models against hijacking or manipulation.

With this capital, HiddenLayer plans to double down on its Agentic Runtime Security and Agent Harness Security suites. These tools are designed to monitor AI behavior in real time, stopping unauthorized actions or tool misuse before they cascade through an enterprise stack. CEO Chris Sestito noted that the company’s mission is to provide the continuous testing required for trust in an era where nearly a third of organizations remain uncertain if they have already suffered an AI-related breach. Beyond product development, the firm is expanding its leadership team and initiating a push into European and EMEA markets to meet global demand for AI-native security.