2 days ago
Exclusive: Crypto security startup Hypernative raises $40M
Hypernative, a provider of real-time threat prevention for crypto companies, raised $40 million in Series B funding, its founders tell Axios exclusively.
Why it matters: Security remains a major barrier to mass adoption of crypto, which is plagued by increasingly sophisticated hacks and exploits.
How it works: Hypernative's technology monitors blockchain transactions to detect and respond to potential threats before they happen.
"We know how to classify that preparation and then essentially front-run their attacks before they're actually triggering it," Hypernative CTO Dan Caspi explains.
Its platform identifies patterns of on-chain preparations that attackers typically make before launching an exploit.
Using AI and machine learning models, it tracks and analyzes on-chain and off-chain data sources, simulating transaction outcomes to protect users and assets in real time.
State of play: The crypto security market is becoming increasingly competitive, with numerous startups offering solutions to prevent hacks, fraud and exploits.
By the numbers: Israel-based Hypernative serves more than 200 customers, protecting assets totaling over $100 billion.
In 2024, the platform detected over $2.2 billion in potential losses from hacks and exploits, a 22% increase from the previous year, the company says.
"We've already saved huge amounts of money in real time for customers and non-customers," Hypernative CEO Gal Sagie says.
Case in point:"Just yesterday, there was a protocol that was not a customer of ours, and we managed to reach out to them and saved around $10 million," he adds.
Zoom out: Traditional financial institutions are increasingly becoming interested in blockchain technology, driven by regulatory clarity and institutional demand for digital assets.
"With the new regulation and the new administration, we see a lot of demand from more traditional financial institutions," Sagie says.
Zoom in: Ten Eleven Ventures and Ballistic Ventures led the round, which included participation from StepStone Group, Boldstart Ventures and the IBI Tech Fund.
