AI-driven cybersecurity startup Exaforce raises $125M Series B for real-time threat detection
AI-driven cybersecurity firm Exaforce told TechCrunch that it has completed a 125 million dollar Series B funding round. The round was led by Insight Partners, with participation from existing investors Andreessen Horowitz and Sequoia Capital. The new round values the company at 750 million dollars.
Exaforce was founded in 2023 by Ravi Iyer, a former Google security engineer. The company's core product strategy is built around detecting cyber attacks in real time within corporate networks and responding to them automatically. The AI models used in that process are trained to scan billions of event records and to flag anomaly indicators within seconds.
TechCrunch's report says the company has roughly tripled its revenue in the last six months. The main source of that growth is annual subscription contracts with large enterprise customers in financial services and healthcare. Exaforce says it is now working with 35 companies in the Fortune 500 list.
The timing of the funding round is consistent with the broader trend in the cybersecurity sector. Major data breaches and ransomware incidents in the United States during the first quarter of 2026 have increased demand from enterprise customers for security solutions that can respond more quickly. Industry analyst Gartner expects global cybersecurity spending to reach 285 billion dollars in 2026.
Exaforce founder Ravi Iyer told TechCrunch: "Traditional cybersecurity solutions respond to attacks after the attack. Our technology focuses on detection and stopping during the attack as it unfolds." Iyer said the AI models had become more accurate with new data in the past six months, with the false-positive rate falling to 0.2 percent.
The company's products include an attack-detection engine called "Sentinel" and an automated-response system called "Echo." Sentinel analyses network traffic, user behaviour and system logs to flag anomalies; Echo responds to detected threats with automated steps including account lockouts, network isolation and system patching.
Insight Partners managing director Jeff Horing told TechCrunch: "Exaforce's approach is the kind that could trigger an industry shift in the integration of real-time data processing and AI decision-making." Horing said the principal reason for participating in the funding round was the product family's potential to expand from the current customer base into the automotive and energy sectors.
Competitors include CrowdStrike, Palo Alto Networks and the Microsoft Defender product family. However, TechCrunch's report says the depth of Exaforce's AI integration is higher and that it offers a deeper integration with existing enterprise software. Through an open API structure, the company can interoperate with Splunk, Datadog and other observability platforms.
On the use of the funding, Iyer said the focus would be on three main areas: scaling the research and development team, expanding sales presence on new continents, and retraining the existing AI models on broader data sets. The company aims to grow its current headcount of 180 to 400 over the next 18 months.
According to TechCrunch, Exaforce has also indicated it has a target to go public by the end of 2027. The company's success will also affect enterprise customers' confidence in AI-based solutions. Industry analysts expect significant merger and acquisition activity in the AI-driven cybersecurity segment over the next three years.