Aikido Secures $60M in Series B Funding to Expand and Automate AI Penetration Testing

Aikido Security, a software security startup based in Belgium, has successfully raised $60 million to enhance its artificial intelligence-driven penetration testing capabilities. This funding aims to streamline the traditionally time-consuming and costly penetration testing process, making it faster and more efficient.

Led by DST Global, the Series B funding round positions Aikido to leverage its AI-powered solutions, which co-founder and CEO Willem Delbare claims are not only more effective but also significantly less expensive than manual testing performed by human experts. The company plans to expand its open-source initiatives to further bolster security against supply chain threats.

Delbare noted, “In the cybersecurity realm, brand reputation plays a crucial role. High-profile clients, particularly those in the Fortune 500, prefer to engage with firms that demonstrate longevity and reliability in the industry.” With a valuation hitting $1 billion during this funding round, Aikido is set to reinforce its market presence.

Market Fragmentation Challenges

Despite previously targeting a 3x revenue growth, Aikido achieved an impressive 5x growth, which has prompted the company to set more ambitious goals for the coming years. Delbare credits lead investor DST Global for enhancing the company’s credibility, given its history of supporting rapidly growing startups across Europe.

Current challenges in the software security market arise from a multitude of tools that often overlap in functionality, complicating integration and increasing costs for security teams. Aikido aims to resolve these issues by integrating AI-powered penetration testing with automated fixes and continuous feedback, effectively streamlining the development lifecycle.

Competing against established brands like Checkmarx and Veracode, Aikido encounters a crowded space dominated by companies with significant market presence. Nonetheless, Delbare maintains that once Aikido is included in the bidding process for cybersecurity projects, it has a strong track record of winning contracts, emphasizing the need for improved visibility in the market.

AI-Powered Penetration Testing

Aikido’s AI agents are designed to imitate human pen testers, particularly excelling in repetitive and manual tasks. By accelerating the penetration testing process—sometimes completing it in as little as 12 hours—these AI agents can operate at speeds that are 50 to 100 times faster than human testers, identifying critical vulnerabilities more effectively.

While effective against compiled software, current tools may overlook vulnerabilities in non-compiled code. Aikido addresses this gap, providing robust security against threats lurking in widely used npm packages and developer tools. Their “Safe Chain” product serves as a free, open-source solution designed to protect against supply chain attacks.

Aikido anticipates an initial public offering (IPO) within three to four years and has set substantial targets for recurring annual revenue. Currently, the firm monitors key performance indicators, including the discovery of critical vulnerabilities and the adoption of their open-source tools, which foster ongoing engagement and security for their users.

As the cybersecurity landscape evolves, strategies to combat potential threats will remain paramount. Aikido aims to enhance security measures, thereby reducing the risk of malware attacks and ensuring a smooth transition for new companies integrating into their platform.