The code generated by AI will undoubtedly change the way the software is built, but it also introduces new security challenges. A survey from developer security platform Synk in late 2023 shows that over 50% of organizations may encounter security issues with AI-enacted code.
For Endor Labs, the opportunity proved attractive enough to have chosen to change courses a bit. Endor started by helping businesses secure dependencies on open source packages. In fact, they raised a $70 million Series A round just two years ago to grow their developer pipeline governance services.
But startup co-founders Varun Badhwar and Dimitri Stiliadis have seen an increase in demand elsewhere. Engineers are finding and fighting vulnerabilities in increasing code that uses AI to fine-tune them.
Today, Endor runs a platform that claims not only can you check your code to identify risks, but can also recommend and apply “accurate” fixes automatically. The company offers plugins for AI-powered programming tools such as Cursor and Github Copilot, which scans written code and flags problems.
Pivoting can prove to be a wise choice. On Wednesday, Endor closed its $93 million Series B round led by DFJ Growth and announced its participation from Salesforce Ventures, Lightspeed Venture Partners, Coatue, Dell Technologies Capital, Section 32 and Citi Ventures.
Badhwar (CEO) said the round value would end with a “several orders of magnitude higher” than the Series A rating. The revenue will be used to expand Endor's platform, he added. Series B will increase the startup's total capital to $163 million.
“This new round sets us up for what we continue to offer, even in a tougher macro environment than similar companies faced five to ten years ago,” Badhwar told TechCrunch. “We have grown up now because we see a recurring revenue growth rate of 30 times more than a year since Series A in 2023.
Endor Labs' platform for reviewing AI-generated code security. Image Credit: Endor Labs
A few months ago, Endor launched a tool designed to help organizations find AI models and services integrated with the codebase and assess integration of security flaws. The idea is to provide better surveillance as AI programming tools grow, Badhwar said.
Endor says it protects over 5 million applications and runs over 1 million scans per week for customers like Openai, Rubrik, Peloton, Snowflake, Egnyte and Dropbox.
“We came out of stealth in October 2022. Interest rates skyrocketed, so we've seen strong traction ever since,” Budwar said.
Ramin Sayar, venture partner at DFJ Growth, said his company invested because he found Endor in the right place at the right time.
“As the generator AI transforms coding practices, developers generate a huge amount of code without thorough visibility and control,” Sayar told TechCrunch. “Endor Labs not only sets new standards for application security, but also launches an expanded platform, which creates movements.”
Endor currently has 133 employees concentrated in its Palo Alto and Bangalore offices.