Prompt Security, a cybersecurity startup focused on protecting enterprises from generative AI threats, has secured $18 million in fresh funding, Business Insider has learned exclusively. The round was led by Jump Capital, with participation from Hetz Ventures, Ridge Ventures, and major tech companies Okta and F5. Founded in 2023 by Itamar Golan, a veteran of the Israel Defense Forces and former security executive at Checkpoint and Orka Security, the company previously raised $6 million in seed funding.
The startup addresses a critical and growing concern: as employees increasingly use generative AI tools like OpenAI’s ChatGPT and Google’s Gemini, new cybersecurity vulnerabilities emerge around data protection, intellectual property theft, and unauthorized access. According to a Gartner survey, almost 30% of companies deploying AI experienced an AI security breach in 2023, highlighting the urgent need for specialized security solutions.
Prompt Security’s software provides comprehensive visibility into any interaction between enterprise employees and generative AI tools. The platform monitors, analyzes, and secures these interactions, helping companies prevent data leaks and maintain control over sensitive information flowing through AI chatbots and other generative AI applications.
Since emerging from stealth in January 2024, Prompt Security has achieved impressive traction, securing several Fortune 500 companies as customers, including The New York Times and New Relic. Golan shared that the company is finishing the year with $1 million in annual revenue, demonstrating strong market demand for AI-specific security solutions.
While the startup faces competition from established cybersecurity giants like Palo Alto Networks and CrowdStrike, Golan argues that Prompt Security’s exclusive focus on AI security gives it a competitive advantage. Unlike legacy security products adapted for AI, Prompt Security was built from the ground up specifically to address the unique challenges of large language models (LLMs) and generative AI tools. As AI adoption accelerates across enterprises, the need for specialized security solutions continues to grow exponentially.
Key Quotes
AI is the biggest attack surface we’ve seen since the cloud
Itamar Golan, founder and CEO of Prompt Security, emphasizes the magnitude of the security challenge posed by generative AI adoption. This comparison to cloud computing—which fundamentally transformed cybersecurity requirements—underscores how AI represents a paradigm shift in enterprise security needs.
If we believe in the growth and expansion of LLMs, security should grow as an inherent part of it
Golan articulates the core thesis behind Prompt Security’s business model: that AI security must scale proportionally with AI adoption. This perspective positions security not as an afterthought but as a fundamental requirement for sustainable AI deployment in enterprises.
Any respectable company should be aware of security risks in AI, and the market is ready
The CEO’s statement reflects growing market maturity and awareness around AI security risks. With Fortune 500 companies already as customers and $1 million in annual revenue, Golan’s confidence in market readiness appears validated by actual business traction.
Our Take
Prompt Security’s rapid growth from founding in 2023 to securing Fortune 500 clients illustrates how quickly AI security has evolved from a niche concern to a boardroom priority. The company’s positioning is particularly smart: rather than competing directly with established cybersecurity giants on their turf, they’re claiming ownership of a new category where legacy solutions fall short. The 30% breach rate is alarming but likely understated, as many AI-related security incidents may go undetected or unreported. What’s especially notable is the investor mix—combining traditional VCs with strategic investors like Okta and F5 suggests potential integration partnerships ahead. As generative AI tools proliferate across enterprises, companies like Prompt Security are positioned to become essential infrastructure, much like how cloud security became mandatory in the previous decade. The real test will be whether they can maintain their specialized focus advantage as larger competitors inevitably develop more sophisticated AI security capabilities.
Why This Matters
This funding round signals the maturation of a critical new cybersecurity category focused specifically on generative AI threats. As enterprises rapidly adopt tools like ChatGPT and Gemini, they’re creating massive new attack surfaces that traditional security solutions weren’t designed to protect. The 30% breach rate reported by Gartner demonstrates this isn’t a theoretical risk—it’s happening now.
Prompt Security’s success reflects a broader trend: AI security is becoming a standalone market segment rather than just a feature of existing cybersecurity platforms. The participation of major tech companies like Okta and F5 as investors suggests established players recognize they need specialized partners to address AI-specific threats.
For businesses, this development is crucial. As generative AI becomes embedded in daily workflows, from customer service to content creation to code development, the potential for data leaks, IP theft, and compliance violations grows exponentially. Companies that fail to implement AI-specific security measures risk exposing sensitive information, violating regulations, and compromising competitive advantages. The emergence of well-funded, focused solutions like Prompt Security provides enterprises with tools to safely harness AI’s benefits while managing its risks.
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Source: https://www.businessinsider.com/prompt-security-raise-18-million-secure-generative-ai-tools-2024-11