Hypernative Raises $40M to Expand Its AI-Powered Web3 Security Platform

Web3 security firm Hypernative has raised $40 million in a Series B funding round, co-led by Ten Eleven Ventures and Ballistic Ventures.

Web3 security startup Hypernative has raised $40 million in a Series B funding round, co-led by Ten Eleven Ventures and Ballistic Ventures, the company announced Thursday.

The company, which focuses on AI-based transaction monitoring technology for fraud prevention and wallet protection, will use the new funding to expand its team and improve its security tools.

Hypernative provides security tools powered by artificial intelligence that detect and prevent threats in real time. The platform uses advanced detectors, transaction simulators, and analysis of both on-chain and off-chain data to identify and mitigate risks.

The startup, which came out of stealth in January, is currently monitoring and protecting more than 200 web3 projects, helping secure assets worth over $100 billion, it said.

In the past year alone, Hypernative’s technology has identified more than $2.2 billion in losses caused by phishing, hacks, and other types of fraud.

The recent Bybit exploit, which saw $41.4 billion lost in February, has brought more attention to the growing threat of cyberattacks in the web3 industry. But Hypernative’s tools aim to reduce such risks by offering preventive security measures, rather than reactive solutions.

The startup launched in January following a $9 million seed round led by Boldstart Ventures. It then raised $16 million in a Series A funding round in September. Other investors in previous rounds include Blockdaemon, Alchemy, Quantstamp, Borderless, and Nexo.

The new Series B round, which also saw participation from StepStone Group, Quantstamp, Boldstart, and IBI Tech Fund, brings Hypernative’s total funding to over $65 million.

“As web3 gains more structure and attracts more institutional interest, a major aspect still lagging is the focus on e-grade security at the levels that institutions demand and are used to,” said Hypernative CEO and co-founder Gal Sagie.

“In order to bring more users into web3 and build lasting trust with them, we need to strengthen protection at the infrastructure level to create safer and more accessible systems for developers, users and institutions.”