Endor Labs Raises $93M to Secure AI-Generated Code

The Rising Security Concerns of AI-Generated Code

The increasing use of artificial intelligence in software development is undeniably reshaping the industry. However, this shift also introduces novel security vulnerabilities. A recent survey conducted in late 2023 by Synk, a developer security platform, revealed that over 50% of organizations regularly or frequently experience security issues stemming from code produced by AI.

Endor Labs' Strategic Shift

Recognizing this emerging challenge as a significant opportunity, Endor Labs adjusted its core focus. Initially, Endor concentrated on securing open-source package dependencies for companies. They had previously secured a $70 million Series A funding round to bolster their developer pipeline governance service.

The company’s co-founders, Varun Badhwar and Dimitri Stiliadis, identified a growing need: the detection and mitigation of vulnerabilities within the expanding volume of code generated and refined using AI tools.

A Platform for Code Review and Automated Fixes

Endor Labs now operates a platform capable of reviewing code to pinpoint risks. Furthermore, it provides recommendations for “precise” corrections and can implement these fixes automatically. A plug-in is offered for AI-assisted programming environments like Cursor and GitHub Copilot, enabling real-time code scanning and issue flagging as code is being written.

Series B Funding and Valuation

This strategic pivot appears to be proving successful. Endor Labs announced the completion of a $93 million Series B funding round led by DFJ Growth on Wednesday. Participation in the round included Salesforce Ventures, Lightspeed Venture Partners, Coatue, Dell Technologies Capital, Section 32, and Citi Ventures.

According to Badhwar, the CEO, this funding round has resulted in a company valuation “orders of magnitude higher” than that achieved during the Series A round. The capital will be allocated to the expansion of Endor’s platform.

The Series B investment brings the total capital raised by the startup to $163 million. Badhwar stated to TechCrunch, “This new round positions us to continue delivering, even in a tougher macro environment than similar companies faced five to 10 years ago.” He further explained that the company chose to raise funds now due to substantial momentum – a 30x increase in annual recurring revenue since the Series A round in 2023 – allowing them to intensify their focus on customer outcomes.

Enhanced Oversight of AI Integrations

Several months prior, Endor launched a tool specifically designed to help organizations identify where AI models and services are integrated into their codebases. This tool also evaluates these integrations for potential security weaknesses. The intention is to provide improved monitoring as AI programming tools become more widespread, as Badhwar explained.

Customer Base and Platform Protection

Endor reports that its platform currently safeguards over 5 million applications and performs more than a million scans weekly. Its customer roster includes prominent companies such as OpenAI, Rubrik, Peloton, Snowflake, Egnyte, and Dropbox.

Badhwar noted, “We came out of stealth in October 2022 – right as interest rates spiked – and we’ve seen strong traction ever since.”

DFJ Growth's Investment Rationale

Ramin Sayar, venture partner at DFJ Growth, explained that their firm’s investment decision was based on Endor’s advantageous position within a rapidly evolving landscape.

“As generative AI transforms coding practices, developers are generating vast amounts of code without thorough visibility and control,” Sayar conveyed to TechCrunch. “Endor Labs is not only setting a new standard in application security – the team is creating a movement by launching their expanded platform.”

Company Size and Location

Currently, Endor Labs employs 133 individuals, primarily located in its offices in Palo Alto and Bangalore.