HiddenLayer secures $100 million Series B as AI security demand surges
AI protection firm HiddenLayer raised $100 million in a Series B round, citing rapid growth in enterprise AI security spending.
HiddenLayer, a security startup focused on protecting AI models, agents and associated workflows, announced a $100 million Series B financing round. The round was spearheaded by Delta-v Capital and included investors such as Ten Eleven Ventures, Morgan Stanley, Microsoft’s M12 and Booz Allen Hamilton. The company reported that its annual recurring revenue has expanded more than tenfold, now sitting in the tens of millions, driven largely by new customers in financial services, major tech firms, and contracts with the Department of Defense and intelligence agencies.
Gartner estimates AI security spending will reach $2.83 billion this year and approach $4.78 billion the following year, reflecting heightened market demand. HiddenLayer plans to use the capital to broaden its product suite—adding protections against prompt injection, agent manipulation and malicious tool use—while scaling sales, distribution and its presence in Europe and the broader EMEA region.
Why it matters
The funding underscores growing corporate concern over AI vulnerabilities and signals expanding market for AI security solutions.
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