Israeli cybersecurity startup Zenity has raised $125 million in a Series C funding round, positioning itself at the forefront of a rapidly expanding market focused on securing artificial intelligence agents deployed inside large enterprises. The round underscores growing investor conviction that agentic AI — software capable of taking autonomous actions across corporate systems — introduces security vulnerabilities that existing tools are ill-equipped to address. The funding follows a broader wave of capital flowing into Israeli technology companies, a trend tracked in our earlier coverage of Ventures’ AI bets that highlighted Israel’s deepening role in global AI infrastructure.
According to Globes reporting, the round was led by ICONIQ Growth, with participation from existing investors including Balderton Capital and Tel Aviv-based venture firm Grove Ventures. The company, founded in 2021 by Ben Kliger and Michael Bargury, has built a platform designed specifically to monitor, govern, and secure AI agents — including those built on tools such as Microsoft Copilot, Salesforce Agentforce, and a growing roster of large language model-based automation platforms — as they proliferate across enterprise environments.
A Market Shaped by Autonomous AI Risk
The security challenges Zenity targets are distinct from traditional cybersecurity concerns. AI agents operate with elevated permissions, can access sensitive data repositories, execute code, send communications, and interact with third-party services — often with limited human oversight. A compromised or misconfigured agent can therefore move laterally through enterprise systems in ways that standard endpoint or network security products were never designed to detect. Bargury, who previously led security research at Microsoft, has publicly demonstrated techniques by which attackers can manipulate AI agents through so-called prompt injection attacks, effectively hijacking an agent’s instructions to perform unauthorized actions.
Industry analysts estimate the market for AI application and agent security could reach several billion dollars within the next three to four years, as enterprises accelerate deployments of agentic workflows across finance, legal, human resources, and customer operations functions. Zenity’s platform sits at the governance layer, providing visibility into what agents exist within an organization, what data they can access, and whether their behavior deviates from expected parameters. The company claims its customer base includes a significant portion of the Fortune 500, though it has not disclosed specific client names or revenue figures publicly.
Funding Deployment and Competitive Landscape
Zenity has indicated it will deploy the fresh capital primarily across three areas: expanding its engineering and research headcount, accelerating go-to-market efforts in North America and Europe, and deepening integrations with the major enterprise AI platforms that its clients already use. The company is headquartered in Tel Aviv with a commercial presence in New York, a footprint likely to grow as it competes for enterprise security budgets against both specialist startups and the broader platforms offered by established cybersecurity vendors.
The competitive field is intensifying. A handful of other startups — including Aim Security and Lasso Security, also Israeli-founded — are pursuing adjacent segments of the AI security space. Larger incumbents such as CrowdStrike, Palo Alto Networks, and Microsoft itself have each signaled intent to extend their platforms into AI governance and security, creating a race between specialized players with deeper technical focus and scaled vendors with existing enterprise relationships. Zenity’s Series C valuation was not disclosed, though the size of the round and the caliber of the lead investor suggest a post-money figure well into the hundreds of millions of dollars.
The raise arrives as enterprise spending on AI security begins to move from exploratory budgets into dedicated line items. Chief information security officers surveyed by major advisory firms this year have consistently ranked unsanctioned or inadequately governed AI agents among their top emerging risk concerns, a shift from 2023 when the threat was considered largely theoretical. For Zenity and its investors, the $125 million bet is that theoretical risk has now become an operational reality — and that enterprises will pay meaningfully to manage it. That dynamic mirrors the broader pattern of long-run value creation in technology sectors where genuine risk reduction commands durable pricing power.