Endor Labs Raises $93 Million in Series B Funding as AI Code Security Track Becomes New Battleground

Endor Labs builds tools to scan AI-generated code for vulnerabilities, announced on April 23 that it had closed a $93 million Series Bfinancing(totaling $163 million), led by DFJ Growth and followed by Salesforce Ventures and others, at a valuation "several orders of magnitude higher" than the Series A round.

Endor currently employs 133 people, primarily in offices in Palo Alto and Bangalore.

Badhwar, the company's CEO, said the round valued Endor "several orders of magnitude higher" than its Series A valuation, adding that the proceeds will be used to expand Endor's platform. The proceeds will be used to expand Endor's platform, he added, and the Series B round brings the startup's total funding to $163 million.

"This new round of funding allows us to continue to deliver our product even in a tougher macro environment than our peers faced 5 to 10 years ago," Badhwar told TechCrunch. "We're hiking now because we're seeing strong momentum -- a 30x increase in annual recurring revenue since our Series A round in 2023 -- which allows us to redouble our efforts to deliver results for our customers."

AI-generated code is undoubtedly changing the way software is built, but it's also creating new security challenges. According to a survey conducted by Synk, a developer security platform, at the end of 2023, more than 50% organizations sometimes or often experience security issues with AI-generated code.

For Endor Labs, the opportunity was tantalizing enough that it chose to change direction somewhat.Endor initially helped companies protect their open source package dependencies, and in fact, it even raised $70 million in Series A funding two years ago to grow its developer pipeline governance service.

But the startup's co-founders, Varun Badhwar and Dimitri Stiliadis, saw a growing need elsewhere - to find and combat vulnerabilities in the ever-growing mass of code that engineers use AI to generate and fine-tune.

Today, Endor runs a platform that it claims not only reviews code and identifies risks, but also recommends "exact" fixes and applies them automatically. The company offers a plugin for AI-driven programming tools like Cursor and GitHub Copilot, which scans code as it's written and flags issues.

Image credit: Endor Labs 

A few months ago, Endor launched a tool designed to help organizations discover where AI models and services are integrated with their codebase and assess whether the integrations have security vulnerabilities.Badhwar said the idea is to provide better oversight as AI programming tools proliferate.

Endor says it now protects more than 5 million applications and runs more than 1 million scans per week for customers like OpenAI, Rubrik, Peloton, Snowflake, Egnyte and Dropbox.

"We came out of stealth in October 2022 - just as rates were spiking - and we've seen strong traction since then," Badhwar said.

Ramin Sayar, a venture partner at DFJ Growth, says his firm invested because Endor found itself in the right place at the right time.

"As generative AI changes coding practices, developers are generating massive amounts of code without thorough visibility and control," Sayar told TechCrunch. "Not only is Endor Labs setting a new standard in application security, but the team is is starting a movement by launching its expanded platform."

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https://techcrunch.com/2025/04/23/endor-labs-which-builds-tools-to-scan-ai-generated-code-for-vulnerabilities-lands-93m/