AegisAI Raises $36 Million to Combat AI-Powered Spear Phishing Attacks

AegisAI, a cybersecurity startup founded by former Google security executives, has raised $36 million in Series A funding to expand its AI-powered platform designed to detect and block sophisticated spear phishing attacks generated by artificial intelligence. The funding round was led by Battery Ventures, with participation from existing investors Accel and Foundation Capital, bringing the company’s total funding to $49 million.

The startup was launched last year by Cy Khormaee and Ryan Luo, who previously worked on security technologies at Google, including Safe Browsing and reCAPTCHA. Drawing on years of experience combating email threats, the founders developed AI agents that analyse incoming messages much like a human security analyst, identifying subtle signs of malicious activity that traditional rule-based systems may overlook.

According to AegisAI, cybercriminals are increasingly using artificial intelligence to launch highly personalised spear phishing attacks by rapidly gathering information about potential victims, including colleagues, current projects and travel plans. The company argues that conventional email security tools built around fixed “if-then” rules struggle to detect these increasingly sophisticated threats.

AI agents built to fight AI-powered attacks.

Khormaee said AI-generated phishing campaigns now bypass existing security controls more than half the time, making them significantly more effective than previous attacks. He added that attackers are creating highly customised emails tailored to individual targets, making traditional detection methods less reliable.

AegisAI says its AI agents can identify threats that standard email security products may miss, including malicious PDF attachments that appear legitimate and contain password protection or CAPTCHA mechanisms designed to evade spam filters and automated scanning tools.

Less than a year after launching, the startup says dozens of customers have already adopted its technology. Its client list includes cryptocurrency payments company Mesh, AI development platform LangChain and privacy compliance provider Lokker.

Investors see growing demand.

Battery Ventures General Partner Dharmesh Thakker said his firm sought a company capable of using AI to defend against AI-driven cyberattacks as phishing campaigns become faster and more sophisticated. He believes protecting organisations from increasingly automated email threats will become one of the cybersecurity industry’s highest priorities.

Thakker also pointed to the founders’ experience securing Gmail, one of the world’s largest email platforms, as a key reason for backing the company. He said that expertise gives AegisAI a strong foundation as it competes with both established email security providers and newer AI-focused startups.

Competing in a crowded cybersecurity market

AegisAI joins a growing group of cybersecurity companies applying artificial intelligence to analyse the context of incoming emails and identify fraud, impersonation and phishing attempts. Among the competitors targeting the same market is Ocean, another AI-powered email security startup backed by Lightspeed, alongside established vendors such as Proofpoint, Mimecast and Abnormal Security.

Although email security is its initial focus, AegisAI plans to expand into additional cybersecurity areas, including data protection. Khormaee said the company’s broader vision is to build highly specialised AI agents capable of conducting complex security investigations, a capability he believes will define the next generation of leading cybersecurity companies.