Arcade.dev, a San Francisco-based provider of the MCP runtime for production AI agents, has raised $60M in Series A funding led by SYN Ventures with strategic investment from Morgan Stanley and Wipro. The company provides a secure action layer that handles agent authorization, tool execution, and governance between AI agents and enterprise systems. Total financing now stands at $72M. The capital will accelerate product development and enterprise go-to-market efforts.
MCP Standardization Fuels Infrastructure Demand
The timing comes amid rapid MCP adoption across major AI platforms. Every major platform including Claude, ChatGPT, Perplexity, Grok, and Mistral now supports MCP. Arcade's approach — purpose-built authorization flows co-developed with Anthropic and deployment flexibility across cloud, on-prem, and air-gapped environments — addresses the gap between protocol standardization and safe production deployment.
Agent Authorization Blocks Production Rollouts
Enterprises face a critical bottleneck where 45.6% of teams still rely on shared API keys for agent authentication. Only 14.4% of organizations send agents to production with proper auth. AI agent projects fail at high rates due to governance, security, and cost issues, with Gartner predicting over 40% of agentic AI projects will fail by 2027.
Runtime Layer Built by Identity Experts
Arcade built its runtime from the ground up by ex-Okta and Stormpath alumni to solve On-Behalf-Of token flows, just-in-time OAuth, and URL Elicitation for browser-based authorization. The platform offers 8,000+ agent-optimized MCP tools across 43+ integrations and integrates with existing identity providers like Okta, Entra, and SailPoint. This contrasts with competitors that focus on unified APIs or legacy iPaaS approaches without native agent auth depth.
"Agents don't fail in production because the model is wrong. They fail because nobody can prove that for any given action by an agent, whether that agent on behalf of that user can perform that action on that resource." — Alex Salazar, CEO
Strategic Investors Signal Enterprise Validation
SYN Ventures led the round with Jay Leek joining the board. Strategic participation from Morgan Stanley and Wipro validates the need for production-grade authorization infrastructure. Investors see Arcade as filling the gap where adoption outruns safe deployment controls.
AI Agents Market Expands Rapidly
The AI agents market stands at $10.9B in 2026 and is projected to reach $53.2B by 2030. Competitors include Composio, which raised $29M, Merge with approximately $75M total funding, and Nango with $7.5M seed. Workato has raised over $415M. The structural shift toward agentic workflows is driving capital into secure action layers that legacy integration platforms were not designed to provide.
Ex-Okta Team Brings Rare Expertise
Founders Alex Salazar (ex-Okta) and Sam Partee (ex-Redis) combine deep identity infrastructure experience with AI and developer tools backgrounds. The team authored the MCP authorization specification adopted into the official protocol by Anthropic.
Tool Call Volume Grows 25x
With tool call volume up 25x in the last six months and production deployments at major banks, Arcade plans to expand its tool catalog and enterprise integrations. The company is actively hiring engineering roles to support growth.