Mind Secures $30M to Enhance AI for Endpoint Data Loss Prevention

A startup, spearheaded by the former CEO of Hexadite, has successfully raised $30 million to advance a disruptive approach to data security that emphasizes prevention over mere visibility.

Based in Seattle, Mind plans to utilize these Series A funds to enhance its security measures around unstructured data. Co-founder and CEO Eran Barak revealed that the investment will support the development of lightweight agents and the deployment of small language models directly onto devices for immediate classification and protection. This initiative aims to bolster Mind’s capabilities in email data loss prevention and innovate architecturally with AI, while also intensifying their focus on endpoint security.

According to Barak, “Our Mind AI classification engine, traditionally cloud-based, will soon operate directly on devices, setting us apart. This enables small language models to classify data in real time without reliance on cloud analysis, allowing for greater depth, precision, and speed.”

Founded in 2023, Mind has grown to a team of 40 and raised over $40 million to date, including an $11 million seed round led by YL Ventures in October 2024. Barak, who previously launched Hexadite in 2014 and sold it to Microsoft in 2017, leads the company’s mission to create robust endpoint-based security solutions.

Distinguishing Factors in Mind’s Security Strategy

Mind’s Series A funding round attracted Paladin Capital Group and Crosspoint Capital Partners, with Barak highlighting their strong cybersecurity backgrounds and federal connections. The initial goal of a $20 million Series A was exceeded, closing at $30 million due to oversubscription.

Barak noted, “Paladin and Crosspoint are highly influential in cybersecurity, particularly within the federal market. Their involvement not only validates our vision but also reinforces our commitment to proactive security measures.”

Unlike many companies that provide after-the-fact insights into data breaches, Mind operates at the source—endpoint devices—where data is most vulnerable. Using a lightweight agent, their platform deploys across both web-based and native applications to mitigate data leaks effectively.

“Visibility is insufficient if data is already compromised. Our focus is on prevention, necessitating on-device security,” Barak stated. “We are redefining data protection by enabling classification of domain-specific documents, such as trade secrets and creative works, on the endpoint.”

Mind’s proactive approach contrasts with traditional methods focused solely on structured data. By transitioning classification capabilities from the cloud to endpoints, the company enhances security through localized processing and policy recommendations tailored to user behavior.

Market Orientation from the Start

Barak believes in establishing a go-to-market strategy alongside product development. Mind has implemented a scalable marketing infrastructure and automated its lead qualification processes, aiming for broader outreach and engagement. Currently concentrating on North America, the company plans to target the UK and EU markets by the end of 2026 through strategic partnerships.

With many clients using Microsoft services like Office 365 and Azure, demand is rising for more flexible DLP solutions than those offered natively. Mind is positioned well to meet this need with its streamlined control over sensitive data flows.

Mind is already supporting a diverse customer base, from small to substantial organizations, and aims to expand its annual recurring revenue to at least $10 million within the next two years. The company is focused on scaling its presence from tens to hundreds of enterprise clients while ensuring comprehensive endpoint protection.

In summary, Mind aims to achieve significant growth, targeting a shift towards eight-digit ARR as a foundational metric for success. The focus remains on refining product-market fit and preparing for future funding rounds as demand for effective endpoint data security continues to rise.