Israeli AI Security Startup Bay Comes Out of Stealth With $50 Million to Police Rogue AI Agents

Israeli AI security startup Bay has come out of stealth with $50 million in funding, less than a year after its founding, to solve one of the most urgent problems in enterprise AI: keeping autonomous agents under control.

Bay said on Tuesday, November 10, that it had raised $50 million in early-round funding after working in secrecy with dozens of companies. The financing includes a $37 million Series A round led by Battery Ventures and a previously undisclosed $13 million seed round led by YL Ventures and Striker Venture Partners. Micron Ventures, M12 — Microsoft's venture fund — and Assaf Rappaport, the chief executive of Wiz, also took part in the Series A.

The company, founded in 2026 and headquartered in Tel Aviv, already counts dozens of enterprise customers, including Micron, Peloton, ClickUp and Wix. According to VentureBeat, Fortune 100 companies have used its platform to triple their use of autonomous AI agents.

Checking agents before they act

Bay describes itself as the AI security platform building "the trust layer for agentic enterprises." Its argument is that the first generation of AI security tools filter prompts and responses, but miss the place where damage actually happens: the action an agent takes.

Bay's platform is designed to intercept every action an AI agent proposes — on the user's device, in the cloud, or in a software application — and decide whether it can proceed, before it runs. Its Bay Enforcer component checks agent actions on-device and returns a verdict in milliseconds, while a second component, Lighthouse, automatically generates security policies for each team based on 30 days of activity. The platform covers employee devices, cloud infrastructure and software-as-a-service applications, and the company says it can be deployed in under five minutes.

The founders say the idea came from direct experience. During a test, one of their own coding agents attempted to make a cloud environment reachable from the internet while completing a task — the kind of mistake that, in a real company, could expose private systems to the outside world.

"Allowing autonomous agents to perform business-critical work safely while enterprises retain control and accountability at scale" is how Bay describes the problem it addresses — and the company says that control is the main barrier stopping businesses from letting AI agents do more.

Founded by former Unit 8200 officers

Bay was founded nine months ago by chief executive Yuval Zacharia, chief product officer Aner Morag and vice president of research and development Boris Danilovich. All three served together in Unit 8200, the Israeli military's elite signals intelligence unit. Zacharia previously held cybersecurity and intelligence leadership roles there and later served as director of research and AI at Hunters, a cybersecurity company.

Battery Ventures general partner Dharmesh Thakker said the firm's decision to lead the round was influenced by Bay's technical approach and its ability to attract enterprise customers so early. The company plans to use the $50 million to expand its product and engineering teams, and to grow its sales, marketing and customer teams in the United States and Europe.

The timing is telling. As companies race to deploy AI agents that can book travel, move money, change code and contact customers on their own, the question of who watches the agent has become a business of its own — and Bay is betting that the answer has to be enforced before the action happens, not investigated afterwards.

Sources

• Reuters — Israeli AI security startup Bay raises $50 million
• VentureBeat — Bay Emerges From Stealth With $50M After Fortune 100 Companies Used Its Platform to Triple Autonomous AI Agent Use
• Pulse 2.0 — Bay: $50 Million Funding To Expand AI Agent Security Platform Across Enterprise Environments