Ox Security Raises $60M to Revolutionize Code Vulnerability Scanning

The Rise of AI Code Security: Ox Security Secures $60 Million

With the increasing adoption of “vibe coding” and generative AI tools within the tech industry, a platform dedicated to identifying vulnerabilities in AI-generated code has successfully completed a new funding round.

Ox Security's Series B Funding

Ox Security, which assesses risk in both AI-created and traditionally written code, announced the closure of a $60 million Series B funding round on Wednesday.

DTCP led the investment, with contributions from IBM Ventures, Microsoft, Swisscom Ventures, Evolution Equity Partners, and Team8. This brings the total funding raised by Ox to $94 million.

Company Origins and Founders

Founded in 2021, Ox Security is based in New York and Tel Aviv.

Neatsun Ziv and Lior Arzi, both experienced software and IT engineers, established the company. They initially collaborated at Check Point, focusing on the development of threat-prevention technologies.

Platform Capabilities and Target Users

Ox Security’s platform, previously detailed by TechCrunch in 2022, caters to both security teams and developers.

It provides tools for scanning code within applications and securing the overall software supply chain. The platform can model potential threats and suggest remediation strategies, aiding in code reviews and generating reports on security breaches and their root causes.

The Impact of AI on Software Development

“AI has fundamentally altered software development over the last year,” explained Ziv. “While these tools accelerate the process for developers of all skill levels, they often lack the nuanced judgment required to detect subtle security weaknesses.”

“Ox empowers developers to concentrate on innovation while simultaneously strengthening an organization’s security defenses.”

Current Usage and Customer Base

Ziv reports that Ox Security currently analyzes over 100 million lines of code daily for approximately 200 customers.

Notable clients include eToro, SoFi, and two of its investors, Microsoft and IBM.

The customer base is diverse, ranging from large Fortune 10 companies to small and medium-sized businesses. Government and military entities, including federal agencies, also utilize the platform.

Future Plans and Financial Projections

The newly acquired capital will be allocated to growth and expansion as Ox Security competes with established players like Snyk, Veracode, Synopsis, and Checkmarx.

Currently generating around $10 million in annual recurring revenue, Ox Security anticipates doubling this figure by year-end. The company projects achieving cash-flow positivity within the next two to three years.

Strategic Vision for Long-Term Success

“Our goal is to establish a strong foundation for sustained success,” Ziv stated. “This allows us to prioritize scaling operations and achieving our broader objectives.”

“We’ve experienced substantial revenue growth and received compelling offers that enable us to accelerate our progress. We determined that this was the opportune moment to advance the company’s trajectory.”