AegisAI, a San Francisco and New York-based AI-native email security platform, has raised $36M in Series A funding led by Battery Ventures. The company uses autonomous AI agents to detect phishing, Business Email Compromise, and zero-day attacks across Microsoft 365 and Google Workspace. The capital will support product expansion and scaling.
AI Attacks Outpace Legacy Defenses
The timing comes amid a surge in AI-generated phishing. AegisAI reports AI-crafted attacks grew 5x in 2025. Competitors include Abnormal Security, which raised $534M total including a $250M Series D in August 2024, and Sublime Security, which raised $240M total including a $150M Series C in October 2025. AegisAI's multi-agent architecture analyzes context and sender behavior without static rules.
False Positives Plague Traditional Gateways
Legacy Secure Email Gateways rely on rules and signatures that fail against personalized AI attacks. Organizations face high false-positive rates that consume analyst time. AegisAI claims up to 90% fewer false positives while catching attacks that bypass existing controls more than half the time.
Agentic Architecture Mimics Human Analysis
AegisAI deploys via API in five minutes with no MX record changes. Its agents examine email context, language, and behavior in real time, providing reasoning for each decision. This differs from Abnormal Security's single behavioral model and Sublime Security's per-tenant rule configuration.
"AI-powered attacks bypass existing controls more than half the time now, which means they're almost twice as effective as they used to be," CEO Cy Khormaee told TechCrunch.
Battery Ventures Backs AI-Native Approach
Battery Ventures led the round with participation from Accel and Foundation Capital, bringing total funding to $49M. The investors signal conviction in agentic AI for security. Founders Cy Khormaee and Ryan Luo previously built Google Safe Browsing and reCAPTCHA.
Email Security Market Shifts to API Models
The email security market is estimated at $5.89B to $6.5B in 2026 with 10.4% to 12.57% CAGR through 2031. Incumbents like Proofpoint were taken private in a $12.3B deal. Structural drivers include exploding AI attacks and the move from MX-based gateways to API integrations.
Ex-Google Team Brings Infrastructure Pedigree
Co-founders Cy Khormaee and Ryan Luo spent over a decade at Google on Safe Browsing and reCAPTCHA, which protect billions of users. Their experience building large-scale detection systems underpins AegisAI's zero-config deployment.
Expansion Beyond Email on Horizon
With deployments live at customers including LangChain, AegisAI plans to expand into broader data security. The company is also growing its team from roughly 20 to 200 employees.