Knostic has raised $11 million in funding to enhance security for enterprise AI systems by preventing large language model (LLM) data leaks. This investment brings the company’s total funding to $14 million and will support the expansion of Knostic’s need-to-know access controls, which add a customizable safety layer to AI tools such as Microsoft 365 Copilot and Glean.

The funding round was led by Bright Pixel Capital, with participation from Silicon Valley CISO Investments (SVCI), DNX Ventures, Seedcamp, and angel investors including Kevin Mahaffey (founder of Lookout) and Gerhard Eschelbeck (former Google CISO).

Knostic addresses a growing security risk where enterprise AI tools lack the contextual awareness to determine what information should be shared or withheld, posing threats to sensitive business data such as financial records, M&A details, and employee compensation. The company's solution applies dynamic access controls to AI-generated responses, ensuring that sensitive information remains protected without restricting AI adoption.

"Knostic’s technology is critical for enterprises looking to leverage AI without exposing confidential data," said CEO and co-founder Gadi Evron. "Businesses can't fully adopt LLMs without addressing these risks, and our investors recognize this urgent need."

The company's approach to AI security has earned industry recognition, winning both the Launch Pad competition at the 2024 RSA Conference and the Black Hat Startup Spotlight Competition—making Knostic the first startup to achieve both honors.

"Unlike traditional access controls that simply allow or deny access, Knostic’s need-to-know policies reshape AI-generated responses to align with business-specific security requirements," explained Sounil Yu, Knostic’s co-founder and CTO.

Knostic’s advisory board includes prominent cybersecurity leaders such as retired Admiral Mike Rogers, former NSA Director, who emphasized the importance of AI data protection in an era of increasing regulatory and reputational risks.

With AI adoption accelerating across industries, Knostic is positioning itself as an essential security layer, enabling enterprises to integrate AI tools while maintaining strict data privacy controls.