AI startup Terra Security raises $30M Series A for continuous penetration testing
Israeli startup aims to scale offensive security testing beyond manual and costly methods.
Terra Security, a provider of AI-driven penetration testing platforms, has raised $30 million in Series A funding. The round was led by Felicis, with participation from Dell Technologies Capital, SVCI, and existing investors SYN Ventures, Lama Partners (FXP), and Underscore VC.
Full list of Israeli high-tech funding rounds in 2025
The raise comes just four months after the company’s Seed round, which included high-profile private investors such as Gerhard Eschelbeck, former Google CISO; founders of Talon Security Ofer Ben-Noon and Ohad Bobrov, Google VP of Research Yossi Matias, and Sysco CISO Charles Tango. The new funding brings Terra’s total capital raised since inception to $38 million.
Founded in 2024 by CEO Shahar Peled and CTO Gal Malachi, Terra employs 25 people in Israel and the United States and already serves Fortune 100 clients. The new funding will be used to expand R&D in Israel, scale U.S. sales operations, strengthen AI agent capabilities, and broaden the customer base.
“Traditional penetration testing hasn’t evolved in decades, leaving organizations vulnerable to sophisticated attacks that manual testing or automated solutions simply can’t simulate at scale,” said Gal Malachi, Co-founder and CTO of Terra Security. “This investment will enable us to expand the offensive security use cases we support, strengthen our R&D capabilities, grow our team, and scale our go-to-market efforts as we transform how enterprises approach offensive security testing. We’re just scratching the surface of what’s possible when you apply purpose-built AI to security testing.”
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Terra has developed a platform for continuous penetration testing powered by dozens of AI agents. Each agent adapts to an organization’s environment and needs, using an ethical hacker–style methodology. The agents adjust their action plans in real time as risks evolve and automatically launch targeted tests when new vulnerabilities are discovered. All tests are conducted under human supervision (Human-in-the-Loop) to ensure accuracy, reliability, and sensitivity to critical events.
While penetration testing is a critical way to detect weaknesses before attackers exploit them, most organizations struggle to perform such tests consistently. Traditional penetration testing and red teaming are largely manual, slow, and costly, limiting adoption. Terra’s AI agents enable thousands of advanced tests with far greater speed, accuracy, and coverage, tailoring each test to the customer’s business context and risk profile.
