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Israeli AI cyber startup Onyx Security raises $40m seed round

Onyx Security, an Israeli cybersecurity startup, raises US$40 million in seed funding to launch platform securing and managing AI agents.

The company said it had operated in stealth mode for 18 months and was already working with multiple Fortune 500 companies.

The funding round was led by Conviction Partners, Cyberstarts, and a group of angel investors.

The company said the funds would be used to expand product and engineering teams and develop new AI models.

Maxim Bar Kogan, co-founder and CEO and a former member of Israel’s 8200 military intelligence unit, said enterprises are becoming agent operators and that they need protection to prevent serious errors or security breaches.

🧠 Food for thought

Implications, context, and why it matters.

AI agents are creating a new ‘shadow AI’ problem for corporations

  • As enterprises roll out AI agents, some can act in unexpected ways, which adds operational risk 1.
  • This growth widens a visibility gap because many security tools built for predictable apps or human-led work cannot track or steer autonomous “digital employees” 1.
  • Onyx offers a “secure AI control plane” (a central layer for managing and enforcing policies) that finds AI agents, watches their reasoning steps, and steps in during runtime to approve, block, or fix actions 1.

A new class of ‘digital employee’ requires new governance and oversight

  • AI agents add a new operational layer inside companies, which calls for clear governance and ongoing oversight 2.
  • Onyx says safer adoption needs defenses against attacks plus checks that prevent high-stakes mistakes 1.
  • Enterprise risk now includes agent errors and hallucinations (confident-sounding but incorrect outputs), alongside blocking outside threats 3.
  • Microsoft says teams that build observability (the ability to monitor how systems behave), governance, and security controls for AI agents early can move faster, strengthen trust in AI, and support quicker innovation 2.

🔗 Source: Reuters

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