Capsule Security Ltd. raises $7M in Seed

Capsule Security Ltd., an Israeli startup specializing in agentic artificial intelligence security, has secured $7 million in seed funding to enhance its market reach and advance its product development. The funding round was led by Lama Partners, with participation from Forgepoint Capital International Management Ltd. Capsule aims to address security challenges associated with AI agents that act at machine speed but do not operate like traditional software, creating what Capsule identifies as a "runtime gap."

Founded in 2025 by Naor Paz and Lidan Hazout, Capsule Security seeks to secure AI agents during the crucial interval between receiving a prompt and executing an action, a period vulnerable to manipulation and data exfiltration. The company consequently developed its platform to monitor AI agent actions in real-time without the need for proxies, gateways, or software development kits. Notable platforms such as Cursor, Claude Code, Microsoft Copilot Studio, ServiceNow Inc., and Salesforce Agentforce are supported by Capsule’s technology.

The strategic rationale behind the funding focuses on bridging the gap in current security tool capabilities, as typical legacy tools struggle to understand the real-time intent and behavior required to secure dynamic agent environments. Ron Zalkind, founding general partner at Lama Partners, emphasized this limitation, highlighting the importance of real-time behavior security in modern environments.

Capsule Security enters a competitive AI security sector underscored by increased investments and interest in cybersecurity solutions capable of handling AI-driven threats. As AI agents become integral to enterprises, firms are racing to develop innovative approaches to ensure these sophisticated technologies operate securely. Capsule's recognition as a finalist in the CrowdStrike Holdings Inc., Amazon Web Services Inc., and Nvidia Startup Accelerator further positions it at the forefront of AI-native security development.

The company announced it had identified two critical zero-day vulnerabilities, "ShareLeak" in Microsoft Copilot Studio and "PipeLeak" in Salesforce Agentforce, both of which have since been addressed by the software providers. As Capsule continues to enhance its security offerings, its immediate focus will revolve around implementing the newly raised funds to solidify its platform and expand its user base. With an advisory board comprising seasoned cybersecurity veterans, Capsule is poised to navigate the complexities of the AI security landscape effectively.