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6 AI Cybersecurity Startup Lists You Can’t Afford to Miss

Cybersecurity firms must continually evolve to keep up with the new technologies and techniques cybercriminals employ. Startups in this space should also develop ways to stay ahead of hackers and keep their clients’ organizational data safe.

One piece of technology startups are increasingly relying on is artificial intelligence (AI). The gist is that AI allows cybersecurity products to use training data to respond to initial attacks and learn as they go by copying and adding information they encounter. This process automates much of the work and helps IT departments worldwide stay ahead of cybercriminals and their technologies.

Cybersecurity professionals face immense challenges because of how sophisticated cybercriminals are becoming. This guide examines how AI can improve cybersecurity and digs into an AI cybersecurity startup list featuring companies poised to make an impact in 2023 and beyond.

What Is AI?

AI is the simulation of human intelligence in computer systems. Applications of the technology include language processing, speech recognition, and expert systems, which allow AI technology to solve complex problems. 

An AI program follows some rules called algorithms to learn, reason, create, and self-correct, allowing the technology to evolve as it encounters more data. Cybersecurity startups of all sizes use AI to automate numerous processes and identify potential issues within a network or system before hackers can damage the company.

Ways AI Improves Cybersecurity

The average cost of a data breach in the United States is $9.44 million according to a report from IBM, so doing everything possible to reduce the risks is vital. AI technologies can help by recognizing patterns and proactively enabling security measures that lower incident response times. AI can maximize organizational cybersecurity in the following ways:

Vulnerability Management

Businesses of all sizes struggle to manage vulnerabilities in their systems. Most organizations are unaware of these vulnerabilities until there’s an attack on their databases, but AI is changing that by analyzing user behavior to identify them proactively. Companies can then address weaknesses within their networks and other systems before a breach.

Threat Hunting

Actively looking for potential threats takes significant time and resources, but AI automates much of the process. It also improves efficiency, as combining AI technology with traditional threat-hunting methods can result in threat detection rates of up to 100%. Using AI to create profiles of every application a company’s network uses can also lead to better threat-hunting outcomes.

Network Security

Protecting organizational networks is vital, and AI makes the process easier. This technology can learn about network traffic patterns, for example, and search for anomalies that appear. AI can also recommend security policies that minimize attacks and help security teams group workloads and applications to make them safer.

AI isn’t a magic bullet in the cybersecurity world, but it remains a powerful tool startups can use when creating solutions their customers need. The result is a safer environment for businesses as they avoid cybercriminals and grow their brands. 

Six AI Cybersecurity Startups You Should Know About in 2023

Numerous startups are leveraging AI to create products offering better outcomes for their clients. These technologies learn as they go and actively identify threats, allowing IT teams to intervene earlier in the process and limit damages. Here are some companies worth mentioning on any AI cybersecurity startup list for 2023:

1. Vectra

Vectra is a cybersecurity platform that leverages AI to detect and identify potential attackers in real time and investigate incidents. The company currently has four products and also allows users to monitor cloud and data center workloads and keep an eye on IoT devices and user accounts. The firm has secured $352.5 million through its Series F funding round.

2. Deep Instinct

Deep Instinct uses AI to identify vulnerabilities and offer zero-day protection through its predictive technologies. This startup uses deep learning for cybersecurity to guard endpoints and any devices connected to the company’s network, offering total security. This process results in businesses blocking threats before they do damage, and investors are intrigued, as the company has raised $321.6 million in funding.

3. SparkCognition

SparkCognition uses AI to protect organizational data. This technology is capable of using real-time sensor data and learning from it, helping mitigate risks while safeguarding company networks and devices from malware and other attacks. The company has raised $286.6 million through its Series D funding round and could experience more growth in the future.


CHEQ is involved in the advertisement verification space, helping customers protect their websites, funnels, and analytics from bots that could disrupt them. This technology helps ensure websites aren’t falling victim to attacks from malicious entities that could hinder their growth. The company has over 10,000 customers and $182 million in funding through its Series C round. 

5. PerimeterX

PerimeterX offers behavior-based threat protection that analyzes user, application, and network behaviors to identify potential attacks. The technology utilizes AI to automate much of this process and safeguards online businesses and their websites in real time. The company is already experiencing growth thanks to its $148.5 million in funding through its Series D round. 

6. Obsidian Security

Obsidian Security uses AI to create a comprehensive threat detection method for businesses. The technology also makes the connectivity of these systems more manageable for users to understand, helping IT departments maximize security. Obsidian Security has raised $119.5 million through its Series C funding round.

This AI cybersecurity startup list touches on a few companies making noise in this space, but it’s hardly exhaustive. Service providers are continually developing new ways to combat cybercriminals and deploying AI in innovative manners to improve organizational security. 

The Future of Cybersecurity

AI cybersecurity startups like Palantir Technologies, SentinelOne, and CrowdStrike have gone public in recent years after showing significant growth through their funding stages. More cybersecurity firms could expand as they embrace AI and the value it provides, making it a trend investors should keep an eye on moving forward.

Option3 brings investors and startups together to drive growth and maximize returns. Our team understands where cybersecurity is lacking and backs startups looking to address those needs. Contact Option3 for more information on the future of AI in the cybersecurity space.

FAQs About AI Cybersecurity & Startups

What is AI, and how is it used in cybersecurity?

AI stands for Artificial Intelligence, which is the simulation of human intelligence in computer systems. In cybersecurity, AI is used to automate processes, recognize patterns, and proactively enable security measures to improve threat detection and response.

How does AI improve cybersecurity?

AI improves cybersecurity by aiding in vulnerability management, threat hunting, and network security. It analyzes user behavior to identify vulnerabilities proactively, automates threat hunting processes, and learns network traffic patterns to detect anomalies.

What are some AI cybersecurity startups to watch in 2023?
Some AI cybersecurity startups to watch in 2023 are:
Vectra: Uses AI to detect and identify potential attackers in real-time.
Deep Instinct: Offers zero-day protection through predictive AI technologies.
SparkCognition: Uses real-time sensor data and AI to protect organizational data.
CHEQ: Involved in advertisement verification to protect websites from bots.
PerimeterX: Offers behavior-based threat protection for online businesses.
Obsidian Security: Uses AI for comprehensive threat detection and system connectivity management.
How can AI help IT departments stay ahead of cybercriminals?

AI can help IT departments stay ahead of cybercriminals by automating threat detection and response processes, analyzing user behavior to identify vulnerabilities proactively, and recommending security policies to minimize attacks.

What is the future of AI in the cybersecurity space?

The future of AI in cybersecurity looks promising, with more startups leveraging AI to combat cyber threats. Companies like Palantir Technologies, SentinelOne, and CrowdStrike have already shown significant growth and expansion in the cybersecurity market.

How can investors get involved in the cybersecurity space and support AI startups?

Investors can support AI cybersecurity startups by identifying promising companies and providing funding to drive their growth and development. Services like Option3 bring investors and startups together to maximize returns and address cybersecurity needs.

What is the average cost of a data breach in the United States?

According to a report from IBM, the average cost of a data breach in the United States is $9.44 million.