Exein Raises $270 Million to Secure Physical AI Devices at $1.7 Billion Valuation

Italian cybersecurity startup Exein has become Europe’s latest unicorn after raising $270 million in funding at a $1.7 billion valuation. Headline led the round as the company expands its cybersecurity platform from IoT devices to physical AI systems.

Based in Rome, Exein develops security technology that protects connected devices by working directly with manufacturers and silicon vendors. The company says its goal is to help devices defend themselves even when they are not operating within a secure network.

Exein targets security for physical AI devices

Exein’s latest product, Photon, is a runtime security solution designed to prevent attacks at the device kernel level. The company says it has secured more than 2 billion connected devices across industries including aerospace, industrial automation, automotive manufacturing, energy, healthcare and semiconductors.

The startup expects demand for its technology to grow with the rise of physical AI systems, including robots, drones, self-driving vehicles, sensors and other connected devices running AI models at the edge.

CEO Gianni Cuozzo said AI is also improving attackers’ capabilities, particularly through open-source models that can operate without safeguards. The company has seen an increase in what it calls “machine-speed attacks” and is developing a foundational model for physical AI security using machine data and telemetry.

Funding supports global expansion

Exein plans to use the new funding for acquisitions, product development and hiring as it expands in the United States and Asia Pacific. The company said Asia Pacific currently generates half of its revenue.

Previous reporting on Exein’s growth and financing has covered its expansion as an embedded security provider, including earlier funding activity.

Resilience Media reported on Exein’s earlier valuation and embedded security expansion, while Bloomberg covered the company’s views on AI-generated cyber threats.

EU cybersecurity rules add pressure on manufacturers

Exein’s growth comes as manufacturers face new cybersecurity requirements under the European Union’s Cyber Resilience Act, which introduces security obligations for digital products.

The company believes these requirements could increase demand for embedded security solutions as more connected devices and AI-powered machines enter the market.