Israeli cybersecurity startup Apex raises $7M in seed funding from OpenAI’s Altman, Sequoia Capital, others

Israeli cybersecurity startup Apex has secured $7 million in seed funding to protect organizations from the swift adoption of artificial intelligence (AI) tools. The round was led by Sequoia Capital, with participation from Index Ventures, Altman, and other key players, including OpenAI Chief Executive Sam Altman, the company revealed on Thursday.

This investment thrust places Apex among the cohort of Israeli cybersecurity startups that have recently clinched substantial funding. Just last month, we covered another Israeli cybersecurity startup, Claroty, which recently announced its plan to go public on the US market at a massive $3.5 billion valuation.

Founded in 2023 by Matan Derman (CEO) and Tomer Avni (CPO), Apex boasts a security platform designed to furnish organizations with a comprehensive overview of their AI activities. This enables them to harness these tools effectively, gaining a competitive edge while sidestepping data breaches, nefarious data infiltration, privacy and legal infringements, and AI-driven cyber assaults.

The genesis of Apex traces back to the illustrious intelligence unit 8200, where Derman and Avni served as distinguished officers, attaining the ranks of Lieutenant Colonel and Captain, respectively. Armed with Master’s degrees from Stanford and Harvard, the duo brings a formidable blend of expertise to the table. Already counting several Fortune 500 companies among its clientele, Apex intends to utilize the seed funding to expedite product development, bolster employee recruitment, and fortify its market outreach.

Since ChatGPT’s launch in late 2022, Generative AI has seen widespread adoption across industries, with 80% of Fortune 500 companies utilizing it. However, this rapid uptake poses security challenges such as data leaks, malicious injections, privacy issues, and cyberattacks. Organizations must balance innovation with robust protection measures to navigate these risks effectively while staying competitive.

“Apex was founded with the mission of empowering security and AI teams to enable the secure and swift AI adoption within world-class organizations,” said Matan Derman, Co-Founder and CEO at Apex. “During the company’s founding, we consulted with dozens of executives to understand their needs and discovered a reluctance to adopt advanced AI due to security concerns. Apex is positioned to change all that, playing a key role in helping organizations secure AI models and applications and enabling them to leverage the power of AI safely.”

Bogomil Balkansky, Partner at Sequoia Capital, underscored the pressing need for heightened security measures in the face of evolving AI landscapes. He remarked, “Every wave of disruptive innovation introduces new security threats and attack vectors, and generative AI is no exception.” Balkansky expressed pride in partnering with Derman and Avni, heralding Apex Security’s rapid ascent as a frontrunner in generative AI security.

Apex revealed ongoing trials with numerous Fortune 500 companies and investment firms, with paid contracts on the cusp of finalization. The influx of funds will be channeled towards expediting product development, expanding the workforce, and amplifying marketing endeavors, the company disclosed.

As the demand for AI tools burgeons, with offerings like OpenAI’s ChatGPT revolutionizing task completion, users are increasingly vigilant about safeguarding their data and thwarting potential threats.

Shardul Shah, Partner at Index Ventures, emphasized the pivotal role of Apex in addressing the burgeoning cybersecurity challenges posed by AI adoption. He lauded Apex’s innovative framework for actively mitigating AI risks on a large scale, heralding it as a transformative solution for the tech industry.

The genesis of Apex epitomizes a paradigm shift in technology, as Avni told Reuters, “Every board, every CEO, every investor, and every entrepreneur is talking about AI and how they can leverage AI.” Against this backdrop, the imperative for robust security measures looms larger than ever, positioning Apex at the vanguard of cybersecurity innovation.