Enterprise AI security firm Unbound raises $4m to tackle data leaks and shadow IT

Enterprise AI security firm Unbound raises $4m to tackle data leaks and shadow IT

Unbound, a cybersecurity startup specialising in AI infrastructure for enterprises, has raised $4m in seed funding to help organisations embrace generative AI tools with greater control and visibility.

The oversubscribed round was led by Race Capital, with participation from Wayfinder Ventures, Y Combinator, Massive Tech Ventures, and a group of angel investors including Ram Shriram, Dr Trishan Panch and Dr John Brownstein.

Unbound provides a platform that allows IT teams to oversee, govern and optimise how AI tools are used within large organisations. Its AI Gateway integrates with tools like Cursor and Roo, offering real-time content protection, usage analytics, and intelligent model routing to prevent data leaks and reduce costs.

The newly secured capital will be used to expand Unbound’s integration capabilities, enhance model orchestration features for open-source LLMs, and improve routing logic.

The founding team, Rajaram Srinivasan and Vignesh Subbiah, bring significant experience in enterprise security and infrastructure. Srinivasan previously led security product development at Palo Alto Networks and Imperva, while Subbiah helped scale platforms at Tophatter and Shogun. Their collaboration at Adobe led to the formation of Unbound in response to the growing risks of unmanaged AI adoption.

Unbound co-founder and CEO Rajaram Srinivasan said, “As AI tools become mainstream, enterprises are turning to flexibility and control. They want visibility into what’s being used, assurance that their data is protected, and the ability to swap in better models as the space evolves. Unbound is the bridge that makes that possible.”

CTO and co-founder Vignesh Subbiah added, “Defaulting to blanket bans on AI tools is like being in the times of GPT 3.5. Unbound enables surgical security controls into every AI request so teams can innovate freely without putting corporate secrets at risk.” He added, “In just a few months, our customers have prevented over 7,000 potential data leaks and cut AI tooling costs by nearly 70 percent.”

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