Nudge Security has secured a $22.5m Series A funding round led by Cerberus Ventures, with participation from existing investors Ballistic Ventures, Forgepoint Capital and Squadra Ventures.
As part of the investment, Morgan Mahlock of Cerberus Ventures will join the company’s board.
The company said the funding round was driven by the rapid rise of AI adoption across enterprise SaaS ecosystems, which has created new complexities in security, identity governance and workforce behaviour management.
Organisations are increasingly challenged by the proliferation of AI-enabled software, non-human identities and highly distributed workflows.
Founded in 2022, Nudge Security provides technology that discovers, assesses and guides workforce behaviour across SaaS and AI applications. Its approach replaces rigid, manual security controls with real-time insight and automated governance that integrates naturally into employees’ day-to-day decision-making.
The company’s platform secures what it calls the Workforce Edge, identifying all SaaS and AI tools used across an organisation, the integrations connecting them, and the human and non-human identities involved. It provides automated guardrails, identity governance workflows, and step-by-step remediation to help organisations scale governance across complex SaaS and AI environments.
The new funding will support the expansion of Nudge Security’s AI governance capabilities, enabling enterprises to manage the convergence of SaaS and AI technologies more effectively. The company has also highlighted strong market momentum, having achieved 3x ARR growth for two consecutive years and onboarding nearly 200 customers across financial services, healthcare, biotechnology and entertainment.
Additional enhancements made over the past year include more than 60 feature releases, advanced identity security tools, AI-driven risk intelligence and real-time alerts on SaaS supply chain threats.
Cerberus Ventures director Morgan Mahlock said, “Nudge Security is at an exciting time in their journey and we’re thrilled to partner with Russ, Jaime, and the team. Nudge has cultivated incredible customer loyalty due to its intuitive product that both security teams and employees appreciate for its ease of use. It can deliver immediate value by providing an automated inventory of the SaaS and AI tools being used across an organization. With the vision to expand governance of interactions with SaaS and AI at the Workforce Edge, Nudge will become even more essential for highly distributed, AI-first organizations.”
Nudge Security co-founder & CEO Russell Spitler said, “The difference between AI apps and SaaS has all but disappeared – almost every app has embedded AI capabilities, agents, and integrations. In order to secure workforce AI use at scale, you need to consider the entire SaaS ecosystem, including all SaaS and AI tools, their integrations, and the non-human identities that connect them. This funding will enable us to continue to expand our capabilities and help organizations confidently embrace innovation while maintaining security and control.”
Reddit CISO Fredrick Lee said, “Nudge Security has been a big win for our security program at Reddit. Within hours of deployment, we gained complete visibility into our SaaS footprint across the organization. It’s rare to find a solution that’s both incredibly powerful and remarkably easy to use.”
Nudge Security co-founder & CTO Jaime Blasco said, “Our team’s ability to innovate at this pace is a direct reflection of our deep understanding of the challenges our customers face. We’re not just building features—we’re solving real problems that security and IT teams encounter every day as they navigate the complexities of AI adoption and SaaS sprawl. This funding allows us to continue pushing the boundaries of what’s possible and deliver unparalleled value to organizations looking to embrace innovation without compromising on security.”
Last week, Sweet Security, a provider of runtime CNAPP and AI security solutions, raised $75m in a Series B funding round to accelerate its expansion and strengthen protection across cloud and AI environments.
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