HiddenLayer Raises $100 Million Series B as AI Security Spending Jumps 83%
Updated
Updated · TechCrunch · Sep 2
HiddenLayer Raises $100 Million Series B as AI Security Spending Jumps 83%
1 articles · Updated · TechCrunch · Sep 2
Summary
$100 million in new Series B funding will help HiddenLayer expand sales, distribution, engineering and research, while pushing further into Europe and EMEA.
HiddenLayer said annual recurring revenue grew more than 10-fold over the past year into the tens of millions of dollars, with more than 90% of that increase coming from new customers.
Demand has accelerated as companies deploy AI agents and workflows more widely, forcing security teams to address prompt injection, agent manipulation, malicious tool use and risks in open-source models.
Gartner estimates AI security spending will reach $2.83 billion in 2026, up 83% from 2025, and climb to nearly $4.78 billion next year.
The Austin startup sells to financial firms, large tech companies, the Defense Department and intelligence agencies, but faces pressure from well-funded rivals and larger cybersecurity vendors that could buy or bundle similar tools.