AI-powered enterprise search tools are revolutionizing business intelligence, but they come with a significant risk: oversharing sensitive information. Enter Knostic, a cybersecurity startup that has raised an impressive $11 million to tackle the growing issue of AI-driven data leaks. The latest funding round brings the company’s total investment to $14 million and positions it as a key player in enterprise AI security.
Securing AI for the Enterprise
Knostic was founded in 2023 by cybersecurity veterans Gadi Evron and Sounil Yu, both of whom bring extensive experience in enterprise security. The company focuses on need-to-know based access controls for Large Language Models (LLMs), ensuring that AI tools like Microsoft 365 Copilot and Glean do not expose sensitive business information to unauthorized users.
“The problem is that these tools just can’t keep a secret,” said Gadi Evron, co-founder and CEO of Knostic. “Businesses can’t adopt these tools without Knostic, and we’re grateful our investors recognize this.”
Enterprise AI search tools often lack granular access controls, increasing the risk of confidential information being inadvertently shared across an organization. Knostic solves this by embedding security at the knowledge layer, ensuring that AI-powered queries return only the information users are authorized to see.
Backed by Top Cybersecurity Investors
Knostic’s funding round was led by Bright Pixel Capital, with participation from Silicon Valley CISO Investments (SVCI), DNX Ventures, Seedcamp, and prominent angel investors such as Kevin Mahaffey (founder of Lookout) and Gerhard Eschelbeck (former CISO of Google).
“In this era of rapid digital transformation, it’s rare to find a board that isn’t asking about AI,” said Fernando Martins, Director of Cybersecurity at Bright Pixel Capital. “Yet attempts to keep LLMs in check have failed time and time again. Enterprises who want to use AI securely need Knostic—it’s that simple.”
SVCI, a group of leading Chief Information Security Officers (CISOs), also recognized the critical nature of Knostic’s technology. “Access control remains one of the biggest risks as companies accelerate AI adoption,” said Shaun Marion, CISO at Xcel Energy and a member of SVCI. “Knostic’s solution plays a crucial role in enabling AI transformation without compromising security.”
Why Knostic’s Approach is a Game-Changer
Traditional security measures struggle to regulate LLM-powered enterprise search tools like Microsoft 365 Copilot. Without effective controls, these tools can unintentionally surface confidential business information—ranging from M&A due diligence to employee compensation details—creating significant security, legal, and reputational risks.
Knostic addresses this issue with a multi-layered security approach, including:
- Copilot Readiness Assessments: Identifies sensitive information at risk of being overshared before LLM tools are deployed.
- AI-powered Need-to-Know Policies: Ensures enterprise AI search returns only the information relevant to each user’s access level.
- Continuous Monitoring & Remediation: Flags policy violations and automatically adjusts permissions to prevent future leaks.
- Protection for Future AI Applications: Expands beyond Microsoft 365 to other enterprise AI platforms like Slack AI and Einstein AI.
“Knostic transforms security teams from the ‘Department of No’ to the ‘Department of Know,’ enabling safe AI adoption,” said Sounil Yu, Knostic’s co-founder and CTO. “Unlike traditional access controls that simply allow or deny access, our need-to-know approach reshapes LLM responses to fit a user’s business context.”
A Winning Streak in the Cybersecurity Space
Knostic’s groundbreaking approach has already earned top industry accolades. The company won both the 2024 RSA Conference Launch Pad competition and the 2024 Black Hat Startup Spotlight Competition, making it the only startup to ever claim victories at both prestigious events.
This rapid rise to prominence signals strong market demand for Knostic’s AI security solutions. “LLM oversharing is a huge problem that enterprises really need to pay attention to,” said Adm. Mike Rogers (Ret.), former NSA Director and a Knostic advisory board member. “Knostic’s technology is crucial for enterprises looking to avoid reputational, legal, and financial harm as AI becomes a strategic imperative.”
What’s Next for Knostic?
With fresh funding in hand, Knostic plans to enhance its platform, expand its cybersecurity capabilities, and strengthen its integrations with enterprise AI tools. As AI adoption continues to grow, Knostic aims to help organizations implement secure and effective AI-driven solutions.
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