AI-powered enterprise search tools are revolutionizing business intelligence, but they arrive with a big risk: oversharing sensitive information. Enter Knostic, a cybersecurity startup that has raised a powerful $11 million to tackle the growing issue of AI-driven data leaks. The most recent funding round brings the corporate’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, each of whom bring extensive experience in enterprise security. The corporate focuses on need-to-know based access controls for Large Language Models (LLMs), ensuring that AI tools like Microsoft 365 Copilot and Glean don’t expose sensitive business information to unauthorized users.
said Gadi Evron, co-founder and CEO of Knostic.
Enterprise AI search tools often lack granular access controls, increasing the chance of confidential information being inadvertently shared across a corporation. Knostic solves this by embedding security on the knowledge layer, ensuring that AI-powered queries return only the data users are authorized to see.
Backed by Top Cybersecurity Investors
Knostic’s funding round was led by Shiny Pixel Capital, with participation from Silicon Valley CISO Investments (SVCI), DNX Ventures, Seedcamp, and distinguished angel investors comparable to Kevin Mahaffey (founding father of Lookout) and Gerhard Eschelbeck (former CISO of Google).
said Fernando Martins, Director of Cybersecurity at Shiny Pixel Capital.
SVCI, a gaggle of leading Chief Information Security Officers (CISOs), also recognized the critical nature of Knostic’s technology. said Shaun Marion, CISO at Xcel Energy and a member of SVCI.
Why Knostic’s Approach is a Game-Changer
Traditional security measures struggle to manage LLM-powered enterprise search tools like Microsoft 365 Copilot. Without effective controls, these tools can unintentionally surface confidential business information—starting from M&A due diligence to worker 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 prone to being overshared before LLM tools are deployed.
- AI-powered Need-to-Know Policies: Ensures enterprise AI search returns only the data relevant to every user’s access level.
- Continuous Monitoring & Remediation: Flags policy violations and robotically adjusts permissions to forestall future leaks.
- Protection for Future AI Applications: Expands beyond Microsoft 365 to other enterprise AI platforms like Slack AI and Einstein AI.
said Sounil Yu, Knostic’s co-founder and CTO.
A Winning Streak within the Cybersecurity Space
Knostic’s groundbreaking approach has already earned top industry accolades. The corporate won each the 2024 RSA Conference Launch Pad competition and the 2024 Black Hat Startup Highlight Competition, making it the one startup to ever claim victories at each prestigious events.
This rapid rise to prominence signals strong market demand for Knostic’s AI security solutions. “LLM oversharing is a big problem that enterprises actually need to concentrate to,” said Adm. Mike Rogers (Ret.), former NSA Director and a Knostic advisory board member. “Knostic’s technology is crucial for enterprises trying 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 boost its platform, expand its cybersecurity capabilities, and strengthen its integrations with enterprise AI tools. As AI adoption continues to grow, Knostic goals to assist organizations implement secure and effective AI-driven solutions.
