Nexos AI Raises €30M to Drive Enterprise AI Adoption

AI Security Startup Nexos.ai Secures €30 Million Series A Funding

For many large organizations, the potential of Artificial Intelligence remains largely unrealized, or presents significant security challenges. The innovative approach taken by a prominent Lithuanian entrepreneurial team to address these issues has attracted considerable attention and investment.

Addressing the Corporate Data Leak Risk

Only a short time after Nexos.ai emerged from stealth mode with an $8 million funding round spearheaded by Index Ventures, Nord Security co-founders Tomas Okmanas and Eimantas Sabaliauskas have successfully closed a €30 million Series A round – equivalent to approximately $35 million – for their new venture.

This new platform is designed to facilitate the secure adoption of AI tools within companies, functioning as an intermediary between employees and AI systems.

A "Switzerland for LLMs"

Okmanas believes that a substantial corporate data breach is currently unfolding, driven by employees uploading confidential information to Large Language Models (LLMs). Instead of prohibiting AI usage, Nexos.ai aims to operate as a neutral intermediary, akin to “Switzerland for LLMs.”

By positioning itself between teams and AI tools, the platform intends to maintain data control while still enabling the productivity improvements that companies desire but are hesitant to pursue.

Rapid Funding and High Valuation

The swift pace of this funding round, and the resulting valuation of €300 million (roughly $350 million), reflects the founders’ experience and the critical nature of the problem they are tackling. Index and Evantic Capital co-led the investment.

Creandum and Dig Ventures, previous investors, also participated, alongside angel investors including the CEOs of Datadog, Klarna, Supercell, and Wix.

Evantic Capital's Role and VC Value

Evantic, the recently launched venture firm founded by former Sequoia Capital partner Matt Miller, was instrumental in securing the funding, even though Nexos.ai wasn’t actively fundraising, according to Okmanas.

Okmanas and Sabaliauskas previously bootstrapped their earlier businesses, including Nord, the $3 billion cybersecurity company responsible for NordVPN. However, they now recognize the benefits of venture capital investment.

Leveraging Expertise and the "Legends" Network

Beyond Index’s support, Nexos.ai is benefiting from Miller’s mentorship and his “Legends” network – a group of 140 experienced operators who advise Evantic’s portfolio companies in exchange for a share of the fund’s profits.

Okmanas notes that he is both a member of the Legends network and actively seeking their insights to refine the product, which is the primary focus of the new capital.

Nexos.ai's Product Offering: Workspace and Gateway

Currently, Nexos.ai’s product suite comprises an AI Workspace interface for employees and an AI Gateway for developers.

The gateway serves as a control layer for security, cost management, and compliance, while also mitigating fragmentation – a key obstacle to AI adoption. It provides a unified access point to approximately 200 AI models, with plans to expand support for private models handling sensitive data.

Focus on Tech-Savvy Companies and Regulated Industries

The Nexos.ai team is currently conducting 50 to 60 demo calls weekly, anticipating that more traditional businesses will require significant internal evaluation before embracing AI. Nexos.ai aims to simplify the deployment process.

The startup is initially concentrating on companies already actively using AI, as well as those in heavily regulated industries with concerns about data governance and the transfer of sensitive information to AI models hosted internationally.

Origins in Tesonet Portfolio and Expansion Plans

Okmanas and Sabaliauskas identified the AI governance gap while managing the portfolio of Tesonet, their company focused on building and investing in startups. Companies within the Tesonet portfolio are among Nexos.ai’s initial customers, including Bulgarian fintech unicorn Payhawk, which also maintains an office in Vilnius.

The funding will support expansion across Europe and North America, as stated in a press release.

Demonstrating AI Value and Future Growth

Okmanas emphasizes the importance of removing barriers to widespread AI adoption. He points to successful implementations within Tesonet’s portfolio, such as Hostinger, where an AI assistant reduced the need for human support staff.

“That’s why we didn’t need to hire 500 people and saved €10 million this year alone,” Okmanas stated.

Revenue and Future Outlook

While sharing Hostinger’s results, Okmanas refrained from disclosing Nexos.ai’s current revenue figures.

He did reveal that the team is projected to grow to 100 employees by the company’s first anniversary, primarily in Europe, where data sovereignty concerns are also creating opportunities for Nexos.ai within public institutions, potentially opening a new market beyond its core enterprise focus.

Note: A correction has been made to the headline of this article for accuracy.