As “vibe coding” gains popularity and tech companies are hiring developers to embrace generative AI tools, platforms that scan code vulnerabilities in AI-generated code have raised new funding.
OX Security, which models risk with both AI- and human-generated code, announced on Wednesday it will close its $60 million Series B. The round was led by DTCP with participation from IBM Ventures, Microsoft, Swisscom Ventures, Evolution Equity Partners and Team8, increasing the OX total to $94 million.
Neatsun Ziv and Lior Arzi founded OX in 2021, based in New York and Tel Aviv. Software and IT engineers met at a checkpoint that addressed the security company's threat prevention product line.
The OX platform, last profiled by TechCrunch in 2022, is aimed at both security teams and developers, providing tools to scan code with applications and ensure a wider supply chain for businesses. OX can model threats, recommend fixes, assist in code reviews, and even help generate executive reports that highlight the compromise and the reasons why they may have occurred.
“About the past year, AI has transformed software development dramatically,” Ziv told TechCrunchW. “These tools accelerate development for both experienced and beginners, but often lack the critical thinking and judgment needed to catch subtle security flaws… OX frees up developers' time, focusing on innovation, and at the same time improves the overall security picture of an organization.”
OX provides tools to protect code that includes AI-generated code. Image Credit: OX Security
ZIV claims that OX analyzes more than 100 million codes daily for around 200 customers, including Etoro, Sofi and two of its investors, Microsoft and IBM.
“Our customer base ranges from Fortune 10 companies to SMEs,” Ziv said. “We also count military and government agencies as clients and federal agencies.”
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According to ZIV, Ox's new capital will be directed towards growth and expansion as the 150-employee startup competes for market share with rivals such as Snyk, Veracode, Synopsis and CheckMarx. OX generates recurring revenues of approximately $10 million a year. This is a figure that ZIV is expected to double by the end of the year, and is expected to test positive for cash flow within the next two to three years.
“We want to position ourselves for long-term success, and this way we can focus on scaling and reaching our larger goals,” says Ziv. “I received an offer that gave me a huge increase in revenue and an opportunity to make a leap. I felt it was the right time to take this step for the company.”