AI Security Startup Secures $18M to Protect Companies from ChatGPT Risks
AI Security Startup Secures $18M to Protect Companies from ChatGPT Risks
With generative AI tools becoming standard in the workplace, cybersecurity risks are skyrocketing. Prompt Security, a startup focused on protecting businesses from AI-related threats, just secured $18 million in Series A funding to address this growing concern.
The Tel Aviv-based company, founded in 2023 by former Israel Defense Forces cybersecurity expert Itamar Golan, helps enterprises monitor and secure their employees' interactions with AI tools like ChatGPT, Google Gemini, and other generative AI platforms.
Why This Matters Now
The timing couldn't be more critical. A recent Gartner survey revealed that nearly 30% of companies using AI experienced a security breach in 2023. As Golan puts it, "AI is the biggest attack surface we've seen since the cloud."
The risks are real:
- Data leakage when employees share sensitive information with AI chatbots
- Intellectual property exposure through careless AI interactions
- Compliance violations as organizations struggle to govern AI usage
Strong Market Traction
Jump Capital led the funding round, with participation from Hetz Ventures, Ridge Ventures, and notable tech companies Okta and F5. This brings Prompt Security's total funding to $24 million after a previous $6 million seed round.
The company has already attracted Fortune 500 clients including The New York Times and New Relic since emerging from stealth in January. Golan expects the company to finish 2024 with $1 million in annual revenue.
While cybersecurity giants like Palo Alto Networks and CrowdStrike offer competing solutions, Golan argues that Prompt Security's AI-specific focus gives it an edge over broader security platforms.
The Bottom Line
As AI adoption accelerates across industries, companies need specialized security tools designed for these new risks. Prompt Security's early success suggests the market is ready to invest in AI-specific cybersecurity solutions.
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