Prompt Security secures $18M Series A to address rising enterprise risks from generative AI adoption

The widespread adoption of generative AI has created significant opportunities for businesses, boosting productivity and fostering innovation with tools like coding assistants and AI-driven applications. However, these advancements bring notable security risks, such as unvetted tools, potential data leaks, and vulnerabilities to AI-specific attacks like prompt injections.

Lacking proper visibility into these tools, many organizations inadvertently expose sensitive data and intellectual property. To address this growing challenge, Israeli generative AI security startup Prompt Security is stepping in with solutions to mitigate these risks.

Today, Prompt Security announced it has secured $18 million in a Series A funding round led by Jump Capital, with contributions from Hetz Ventures, Ridge Ventures, Okta, and F5. This funding will advance the development of its platform, which focuses on securing AI use within enterprises and delivering comprehensive governance and visibility over AI tools.

Prompt Security’s research highlights the scope of the problem: enterprises use an average of 67 generative AI tools, with nearly 90% lacking proper licensing or corporate approval. Additionally, 39% of these tools are configured to train on enterprise data, raising concerns about policy violations and the exposure of sensitive intellectual property.

The platform addresses these risks by inspecting prompts and responses to prevent data leaks, blocking harmful content, and securing systems against threats such as shadow AI and prompt injections. It offers governance tools and flexible deployment options, making it adaptable to various use cases. Prompt Security also became the first vendor to provide security and governance for Microsoft 365 Copilot.

Founded in August 2023 by Itamar Golan and Lior Drihem, Prompt Security leverages the extensive experience of its leadership team. Golan previously led AI initiatives at Check Point Software Technologies and Orca Security, while Drihem served as Director of Innovation at Check Point. Together, they collaborated on early integrations of GPT-3 into cybersecurity solutions, laying the groundwork for Prompt Security’s current offerings.

Since its launch, the company has quadrupled revenue and expanded its customer base fivefold, including Fortune 500 firms. The platform has gained recognition for addressing critical gaps in enterprise AI security, with investors and customers citing its ability to balance innovation with robust protection measures.

Industry Support

“Prompt Security is solving one of the most pressing challenges in today’s AI landscape,” said Saurabh Sharma, Partner at Jump Capital. “Their platform is well-positioned to address the growing need for AI security in enterprises.”

Shawn Bower, Chief Information Security Officer at The New York Times, emphasized the comprehensive nature of the company’s approach, calling it “holistic and encompassing.”