Endor Labs Secures $93M to Enhance AI Code Vulnerability Detection Tools
AI-generated code is revolutionizing software development, yet it’s also creating new security concerns. A recent survey by Synk, a developer security platform, revealed that over half of organizations encounter security issues with AI-generated code either occasionally or frequently.
Endor Labs saw this as an opportunity and decided to pivot its focus. Initially, the company focused on securing open-source package dependencies and even raised $70 million in a Series A round two years ago to support its developer pipeline governance service.
However, co-founders Varun Badhwar and Dimitri Stiliadis recognized the growing demand for tools to identify and address vulnerabilities in the increasing volume of AI-generated code.
Endor Labs now offers a platform that reviews code for risks and recommends precise fixes, which can be automatically applied. Their plugin for AI-powered programming tools like Cursor and GitHub Copilot scans code in real-time, flagging any issues immediately.
This strategic shift appears to be paying off. On Wednesday, Endor Labs announced it had secured a $93 million Series B funding round led by DFJ Growth. Other participants included Salesforce Ventures, Lightspeed Venture Partners, Coatue, Dell Technologies Capital, Section 32, and Citi Ventures.
According to CEO Varun Badhwar, this latest round values the company significantly higher than its Series A valuation. The new funds will be used to expand Endor’s platform. This Series B round brings Endor’s total funding to $163 million.
Badhwar highlighted the company’s impressive growth, noting a 30-fold increase in annual recurring revenue since their Series A in 2023. “This new funding allows us to continue delivering value even in a challenging economic environment,” Badhwar stated.
Several months ago, Endor introduced a tool to help organizations identify where AI models and services integrate with their codebase, assessing these integrations for security vulnerabilities. This tool aims to provide better oversight as AI programming tools become more widespread.
Endor Labs now protects over 5 million applications, conducting more than a million weekly scans for clients such as OpenAI, Rubrik, Peloton, Snowflake, Egnyte, and Dropbox.
“We emerged from stealth in October 2022, right as interest rates surged, and have experienced strong traction since then,” Badhwar remarked.
Ramin Sayar, a venture partner at DFJ Growth, stated that their investment was driven by Endor’s timely market entry. “As generative AI reshapes coding practices, developers are producing vast amounts of code without adequate visibility and control,” Sayar said. “Endor Labs is setting a new standard in application security and leading a movement with their expanded platform.”
Currently, Endor employs 133 people across its offices in Palo Alto and Bangalore.
(Source: TechCrunch)
