HiddenLayer, an AI security company focused on protecting agentic, generative, and predictive AI applications, has secured a $100 million Series B funding round led by Delta-v Capital. The round includes participation from Ten Eleven Ventures, Morgan Stanley, M12 (Microsoft's Venture Fund), and Booz Allen Ventures. The Austin-based firm announced the investment on September 2, 2026, positioning the raise as a response to the growing risks tied to enterprise AI adoption.
Platform Expansion and Security Priorities
The new capital will support the expansion of HiddenLayer's enterprise platform, with particular emphasis on Agentic Runtime Security and a new solution called Agent Harness Security. This new capability extends the Runtime Security module to protect AI coding agents while they operate, helping enterprises safely integrate autonomous coding tools. Company leaders said the funding will allow continued growth of the team and technology needed as agentic AI becomes central to enterprise operations.
Growth and Customer Momentum
HiddenLayer reported annual recurring revenue growth of more than ten times over the past year and added more than fifty new platform customers. Those customers include major organizations across securities brokerage, banking, insurance, accounting, government, technology, IT services, pharmaceuticals, airlines, and the U.S. defense and intelligence communities. Internationally, the company added one of the world's largest pharmaceutical companies, premium automotive brands, and food and beverage providers.
Research Leadership and Industry Impact
The company's research team holds 39 granted patents and 65 pending patents covering adversarial detection, model protection, and AI threat analysis. HiddenLayer developed the first comprehensive Adversarial Prompt Engineering Taxonomy and continues to study threats across generative, predictive, and agentic AI systems. Its researchers also contribute to AI security communities through work with CISA/JCDC, MITRE, NIST, OWASP, and OpenSSF, informing red teaming methods and global AI governance discussions.
Responding to Enterprise AI Exposure
The funding addresses three areas where enterprises are most exposed: visibility into AI agent behavior in production, stopping manipulation and tool misuse, and securing autonomous coding agents that operate with less human oversight. HiddenLayer argues that trustworthy AI requires continuous testing at runtime because design-time principles alone are insufficient. Its 2026 AI Threat Landscape Report found that 96 percent of organizations consider AI critical to operations, while nearly a third are unsure if they have experienced an AI-related breach.
Investor Confidence in AI Security
Delta-v Capital Partner Dan Williams said traditional security tools were built for code and infrastructure, not for models that can be poisoned or manipulated through their own inputs. He described HiddenLayer as a platform that secures AI across its full lifecycle and turns adversarial research into tools security leaders rely on. Ten Eleven Ventures Co-Founder and Partner Mark Hatfield added that rapid enterprise budget shifts reflect urgent demand for AI-specific protection.
Strategic Leadership and Market Expansion
Morgan Stanley's Head of Strategic Investments Zheng Wang noted that HiddenLayer was early to recognize enterprise security as critical for safe AI deployment. The company is also strengthening its leadership team with the recent appointment of Mike Gesnaldo as Chief Revenue Officer. Additional hires are planned as HiddenLayer deepens its channel relationships and expands further into Europe and the wider EMEA region.
HiddenLayer's Series B round marks a significant step in the expansion of AI-specific security infrastructure at a time when enterprise reliance on autonomous systems is growing quickly. The company's combination of research depth, customer growth, and platform development positions it to address emerging risks across the full AI lifecycle. With new leadership and international expansion plans, HiddenLayer aims to help organizations build confidence in AI while managing threats that traditional security tools were never designed to handle.