San Francisco, CA - Aug 01, 2025 - Wallarm, a San Francisco-based leader in API and AI security, has successfully closed a $55 million Series C funding round, led by Toba Capital. This investment brings the company’s total funding to over $70 million, highlighting the growing demand for robust cybersecurity solutions in an AI-driven world. The funds will be used to scale operations, enhance innovation, and expand Wallarm’s global footprint, particularly in protecting APIs and AI systems from emerging threats.
Founded in 2013 by CEO Ivan Novikov, Wallarm has established itself as a pioneer in API and agentic AI security. The company’s unified platform is designed for enterprise production environments, offering a comprehensive API inventory, real-time attack blocking, and patented AI/ML-based abuse detection. Wallarm’s solutions bridge the gap between DevOps and security teams, providing adaptive protection across public, private, and hybrid cloud environments. With competitors like Salt Security, Traceable, and Cequence Security in the market, Wallarm stands out for its focus on real-time threat mitigation and AI-specific protections.
Funding Details
The $55 million Series C round, announced on July 31, 2025, was led by Toba Capital, a venture firm with a strong track record in enterprise security investments, including MobileIron. Previous funding rounds include a $9.16 million Series B in September 2023 and an $8 million Series A in October 2018, also led by Toba Capital, with participation from Y Combinator, Partech, and Gagarin Capital. Wallarm’s total funding now exceeds $70 million, reflecting investor confidence in its growth potential.
| Funding Round | Amount Raised | Date | Lead Investor | Other Investors |
|---|---|---|---|---|
| Series C | $55M | July 31, 2025 | Toba Capital | Not disclosed |
| Series B | $9.16M | September 5, 2023 | Toba Capital | Not disclosed |
| Series A | $8M | October 22, 2018 | Toba Capital | Y Combinator, Partech, Gagarin Capital |
Strategic Goals
Wallarm plans to leverage the Series C funding to achieve several key objectives:
- Platform Enhancement: The company aims to make its platform more appealing to CIOs by improving visibility and business intelligence through AI. This includes strengthening protections for revenue streams driven by APIs, which are increasingly critical to enterprise operations.
- Global Expansion: Wallarm is set to significantly grow its presence outside the U.S., focusing on markets with high demand for API security. This includes doubling down on brand visibility and thought leadership in marketing.
- Innovation in AI Security: With AI adoption outpacing cloud adoption in enterprise settings, Wallarm is prioritizing protections against AI-driven attacks. The company recently introduced agentic AI protection to defend against AI-specific threats, a move that aligns with the evolving threat landscape.
Ivan Novikov emphasized the urgency of these initiatives, stating, “We’re now facing a reality where AI adoption across our major customers—enterprise companies—is even higher than cloud adoption. Our mission is to deliver powerful, proven API protection that stops real-world threats.”
Market Context
The API security market is undergoing a significant transformation due to the rapid adoption of AI by both enterprises and attackers. AI enables attackers to develop and execute exploits at an unprecedented pace, while also expanding the attack surface through new APIs and AI applications. Traditional security tools are often inadequate for these challenges, making real-time blocking and advanced detection—core strengths of Wallarm’s platform—essential.
Wallarm’s recent performance underscores its market traction. In 2024, the company reported a 134% net revenue retention rate among enterprise accounts across various sectors, driven by rapid innovation and customer demand. The introduction of a penetration testing service for agentic AI further demonstrates Wallarm’s commitment to addressing AI-specific vulnerabilities.
Leadership and Growth
To support its ambitious goals, Wallarm has bolstered its leadership team with strategic hires:
- Morgan Jay, President and Chief Revenue Officer, to drive sales and revenue growth.
- Michelle Gerson, Vice President of Marketing, to enhance brand visibility and thought leadership.
- Greg Deisher, Chief Financial Officer, to oversee financial strategy and operations.
These appointments reflect Wallarm’s focus on scaling its go-to-market infrastructure and servicing Fortune 1000 customers, a priority since its earlier funding rounds.
Industry Impact
Wallarm’s funding comes at a time when cybersecurity investments are surging, particularly in AI and API security. For comparison, Noma Security, another API security firm, raised $100 million in a Series B round in 2025, highlighting the competitive and high-stakes nature of the market. Wallarm’s ability to secure $55 million in a Series C round positions it as a key player in this space, with the potential to shape the future of API-driven business logic protection.
The company’s emphasis on real-time protection and AI-driven threat detection aligns with industry trends, as enterprises increasingly rely on APIs for critical operations. By addressing the unique challenges of AI-driven attacks, Wallarm is well-positioned to meet the needs of organizations navigating this complex threat landscape.
Looking Ahead
With this funding, Wallarm is poised to accelerate its growth and solidify its leadership in the API security market. The company’s focus on innovation, global expansion, and strategic hires will likely enhance its ability to protect enterprises from the evolving risks of AI-driven cyber threats. As APIs continue to power business revenue and operations, Wallarm’s platform is set to become an indispensable tool for organizations worldwide.
Source : Wallarm
