Mind Security Inc., a provider of artificial intelligence automated data loss prevention solutions to help businesses avoid costly breaches, today announced it has raised $30 million in early-stage funding led by Paladin Capital Group and Crosspoint Capital Partners.

The Series A funding round also attracted funding from new investor Okta Ventures and existing investor YL Ventures bringing the total raised by the company to over $40 million.

Mind provides AI-native data loss prevention solutions and insider risk management programs that will autonomously detect sensitive data, assist with risk issues and stop them before they get out the door. The company says it can provide this solution at “machine speed” by providing a “unique approach by combining a data security posture and data loss prevention in one unified platform.”

“Mind was founded to help organizations thrive in the AI era and navigate the exponential growth of sensitive data in complex IT environments,” said co-founder and Chief Executive Eran Barak. “Our rapid growth reflects a clear market shift toward smarter, faster and fully automated approaches to DLP and insider risk.”

Employees handle sensitive data within organizations on a day-to-day basis and it exists within both structured and unstructured data. The latter poses the greatest risk because sensitive data, such as employee login credentials or customer account information, could lead to a larger breach.

The IBM Cost of Data Breach Report from 2024 estimated that the average breach cost global companies around $4.88 million. Although automated exploits and malicious attacks remain the top vectors, human error accounted for 24%, making up nearly one-fourth of all attacks.

One high-profile incident from this year included overseas employees from Coinbase Global Inc., who provided insider sensitive information to hackers leading to a data breach of information on 1% or about 100 million customers.

Mind said its platform employs a multilayer classification system to identify sensitive data and minimize false positives. This is something that traditional systems make difficult for teams due to excessive alerts and manual overviews, which can overburden data loss prevention teams. According to Mind, prevention starts with real-time detection and blocking of attempts, either malicious or inadvertent, to remove sensitive data from within company firewalls.

When such data is on the move, the company says, its AI-native platform leaps into action and makes an autonomous decision based on business context to determine normal user behaviors versus high-risk behaviors that should be stopped.

 “AI is transforming how enterprises access and leverage data — but also how they lose it,” said Gibb Witham, senior vice president of Paladin Capital Group. “As large language models make sensitive data instantly available to employees through natural language prompts, DLP has re-emerged as a critical, hair-on-fire problem.”

Barak said the new funding will allow the company to double its research and development and marketing teams by the end of the year.

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