HiddenLayer Secures $100 Million in Series B Funding to Enhance AI Security Solutions

HiddenLayer's Major Funding Round

On September 2, 2026, HiddenLayer, a front-runner in the field of AI security, made headlines by announcing a significant investment of $100 million in Series B funding. This round was led by Delta-v Capital, with notable contributors such as Ten Eleven Ventures, Morgan Stanley, Microsoft's Venture Fund, and Booz Allen Ventures. The funding will primarily be utilized to amplify HiddenLayer's enterprise platform, particularly enhancing its Agentic Runtime Security capabilities and introducing a new solution known as Agent Harness Security.

The impetus for this substantial investment comes as businesses scramble to fortify their defenses against an ever-expanding landscape of AI threats. As autonomous agents increasingly take on the role of writing and managing code, it becomes paramount for organizations to have robust security measures in place. Chris Sestito, CEO and Co-Founder of HiddenLayer, remarked, "We set out to pioneer trusted, secure use of AI for enterprises, long before most organizations saw the urgency we do today."

Growth and Expansion

HiddenLayer's raise follows an impressive year for the company, which saw its annual recurring revenue expand by more than tenfold. Despite the challenges within the tech industry, they successfully signed over 50 new platform customers across various sectors, including major players in securities brokerage, banking, government, and pharmaceuticals. Their international clientele now includes one of the largest pharmaceutical companies in the world as well as prominent automotive and food & beverage brands.

The strong growth trajectory is further supported by HiddenLayer's robust research and development efforts. The research team has been pivotal in addressing AI vulnerabilities, holding a remarkable 39 patents and with 65 more pending, covering areas like adversarial detection and AI threat analysis. Their extensive work has established them as thought leaders within the AI security community. They've developed the first comprehensive Adversarial Prompt Engineering Taxonomy and continue to identify various potential threats across generative and agentic AI.

A Paradigm Shift in AI Security

Dan Williams, a Partner at Delta-v Capital, highlighted the unique challenges posed by AI, stating, "Traditional security tools were built for code and infrastructure, not for models that can be poisoned, hijacked, or manipulated through their own inputs." HiddenLayer has crafted an end-to-end solution designed to secure AI throughout its entire lifecycle. This includes ensuring protection for both the foundational models and the additional layers of agentic systems built on top.

The fresh funds will enable HiddenLayer to enhance visibility for organizations utilizing AI agents in production, promptly flagging any signs of manipulation or unauthorized activities. By implementing these security measures, enterprises can mitigate the risk of breaches that could potentially compromise sensitive information or operational integrity. This is increasingly important as nearly a third of organizations are uncertain whether they have faced an AI-related security breach, according to HiddenLayer's 2026 AI Threat Landscape Report.

Leadership Expansion and Future Outlook

To complement their growth strategy, HiddenLayer has also announced the appointment of Mike Gesnaldo as the Chief Revenue Officer. Additional hires are expected as the company seeks to expand its international presence, particularly in Europe and the broader EMEA regions.

Zheng Wang from Morgan Stanley expressed confidence in HiddenLayer's future, stating, "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."

Conclusion

As enterprises continue to prioritize AI security amid increasing adoption and evolving threats, HiddenLayer's comprehensive platform promises to play a pivotal role in securing AI infrastructure. Their proactive measures and innovative approach to AI threat mitigation align perfectly with the urgent demands of modern enterprises, ensuring that they can harness the potential of AI with increased confidence and safety.