AI security startup Knostic raises $11M to stop corporate leaks in the age of LLMs
Enterprises turn to ‘need-to-know’ AI access controls as sensitive data risks grow.
As businesses rush to integrate generative AI into their operations, a fundamental challenge remains: how to ensure these powerful tools don’t expose sensitive information. Knostic, a cybersecurity startup focused on controlling AI access, has secured an $11 million investment to address this growing risk. The funding round, led by Bright Pixel Capital with participation from Silicon Valley CISO Investments (SVCI), DNX Ventures, Seedcamp, and prominent angel investors, brings Knostic’s total funding to $14 million.
Knostic was founded in 2023 by cybersecurity veterans Gadi Evron and Sounil Yu to tackle one of the most pressing concerns in enterprise AI adoption: large language models (LLMs) that lack the ability to discern context-sensitive information. Traditional access controls, which operate on binary allow-or-deny principles, fail to address the nuanced security risks of AI tools like Microsoft 365 Copilot and Glean, which can inadvertently reveal confidential data such as financial results, M&A plans, or employee salaries.
“The problem is that these tools just can’t keep a secret,” said Gadi Evron, Knostic’s co-founder and CEO. “Businesses can’t adopt these tools without Knostic, and we’re grateful our investors recognize this.”
The rise of generative AI has ignited a wave of investment in security solutions, yet enterprises continue to struggle with preventing LLMs from leaking sensitive details.
Knostic’s “need-to-know” technology operates as an intelligent safety layer, dynamically reshaping AI-generated responses to ensure they comply with an organization’s security policies. Unlike conventional data loss prevention solutions, which primarily restrict access, Knostic’s approach allows AI tools to function without exposing proprietary data. “Need-to-know boundaries allow enterprises to accelerate their AI adoption without compromising security,” explained Sounil Yu, Knostic’s co-founder and CTO.
The company’s approach has already gained industry recognition. Shortly after its market debut, Knostic was named a winner at both the 2024 RSA Conference Launch Pad and the Black Hat Startup Spotlight Competition—the first startup to win both honors.
