Bay, an AI security startup developing tools to protect enterprises using autonomous AI agents, has raised $50 million in total funding as it emerges from stealth.
The funding includes a $37 million Series A led by Battery Ventures and a previously undisclosed $13 million seed round led by YL Ventures and Striker Venture Partners.
The Series A also attracted investment from Micron Ventures, M12, Microsoft’s venture fund, and Assaf Rappaport, CEO of cybersecurity company Wiz.
Founded in 2026, Bay has already secured dozens of enterprise customers, including Micron, Peloton, ClickUp and Wix. The company aims to help businesses adopt autonomous AI agents while maintaining security, control and accountability.
“If you’re a security leader at an enterprise today, you’re likely facing one of two realities: either AI agents have already spread across your organization and it’s the Wild West, or your leadership has mandated an enterprise-wide AI rollout by the end of the year to accelerate the business,” said Yuval Zacharia, co-founder and CEO of Bay. “Either way, the challenge is the same: enabling AI adoption at scale without losing control. Bay was built to be the one platform that secures every way the enterprise uses AI, so security becomes the reason AI ships faster, not the reason it stalls.”
Securing Autonomous AI Agents Across Enterprises
As businesses increasingly use AI agents to handle tasks such as software development and business operations, security teams face a growing challenge: autonomous agents can take actions that create risks even when they have not been compromised.
Bay was founded after its team observed a coding agent attempting to expose a cloud environment to the internet while completing a test. The agent was using legitimate permissions to achieve its assigned goal, but its actions could have created a security vulnerability.
“AI is fundamentally changing how enterprises operate, and the ability to deploy autonomous agents safely will become a critical competitive advantage,” said Andrew Byrnes, Director of Venture Capital, Micron. “We’ve seen firsthand how Bay’s technology can help accelerate AI adoption while maintaining the control and accountability required in a large enterprise. We believe that this trust layer will become essential infrastructure for the agentic era.”
“We evaluated a crowded field of companies addressing AI agent security, and Bay stood out because it can understand and control individual agent actions, from the endpoint to the cloud, while fitting into infrastructure enterprises already use,” said Yoav Leitersdorf, managing partner at YL Ventures. “We believe Bay can become as fundamental to enterprise AI adoption as the network firewall was to the internet era.”
Bay’s platform is designed to prevent such incidents by monitoring and controlling AI activity across employee devices, cloud infrastructure and software-as-a-service (SaaS) applications.
The platform combines AI discovery and security posture management, session-level monitoring and real-time enforcement. It evaluates proposed agent actions within the context of the full session and determines locally, within milliseconds, whether an action should be allowed.
Rather than requiring security teams to create and maintain individual rules for every AI agent or tool, Bay uses contextual intelligence to understand organisational activity and assess potential risks. This allows it to distinguish between actions that may appear similar but have different security implications.
Bay says its platform can be deployed in less than five minutes without requiring an additional persistent endpoint agent, kernel driver or network proxy. It works across different AI models, assistants and agent frameworks, allowing businesses to apply consistent security policies as they introduce new tools and workflows.
Founders Bring Cybersecurity Experience
Bay was founded by CEO Zacharia, Chief Product Officer Aner Morag and Vice President of Research and Development Boris Danilovich.
Zacharia began her career in Israeli intelligence at Unit 8200, where she led a department of 50 people. She later moved into offensive cybersecurity before serving as Director of Research and AI at Hunters.
Danilovich previously led a team of 90 engineers at CrowdStrike, where he worked on a major component of the company’s endpoint security platform and helped lead its Israeli research and development centre.
Morag was among the early employees at Noname Security, where he later became Vice President of Product and helped scale the company.
Bay Plans to Expand Its Teams
Bay plans to use the new funding to expand its product and engineering teams and strengthen its sales, marketing and customer operations in the United States and Europe.
Headquartered in Tel Aviv, the company currently serves enterprise customers across the US and Europe. Its platform is designed to help organisations govern AI assistants, coding agents and custom-built agents, along with the tools and Model Context Protocol (MCP) servers they use.
As enterprise adoption of autonomous AI grows, Bay is positioning its platform as a security layer that allows businesses to give AI agents more responsibility while keeping control over what they can do.
