AI-generated code is reshaping the software development landscape — but it’s also introducing serious security concerns. According to a late 2023 survey by developer security firm Snyk, over half of organizations frequently encounter security issues in AI-produced code. That growing threat led Endor Labs to pivot its mission. Originally founded to help companies secure open source package dependencies, the startup is now tackling vulnerabilities introduced by AI coding tools.
Endor Labs shift is already paying off. On Wednesday, the company announced a $93 million Series B funding round led by DFJ Growth. Additional investors include Salesforce Ventures, Lightspeed Venture Partners, Coatue, Dell Technologies Capital, Section 32, and Citi Ventures.
CEO and co-founder Varun Badhwar said the new round values Endor at “orders of magnitude” above its 2023 Series A valuation. That earlier round raised $70 million to scale its open source governance services. This latest round brings the startup’s total funding to $163 million.
From Open Source to AI Code Security
Co-founders Badhwar and Dimitri Stiliadis recognized rising demand for tools that could identify flaws in AI-generated code and fix them automatically. That insight led to the creation of a new platform that integrates directly with AI development environments like GitHub Copilot and Cursor.
The platform scans code in real time, flags potential vulnerabilities, and recommends — or even applies — precise fixes. According to the company, its tools now protect over 5 million applications and perform more than a million scans weekly.
Recently, Endor also launched a tool that detects where AI models and services integrate with application code, helping teams assess those touchpoints for security risks. It’s a timely solution, as AI tools become more deeply embedded in the development lifecycle.
Riding the Generative AI Wave
The company has seen explosive growth since emerging from stealth in October 2022. In just over a year, Endor has achieved 30x annual recurring revenue growth, Badhwar said. That momentum convinced the team it was the right time to raise new capital despite a tough funding climate.
“This new round positions us to continue delivering, even in a tougher macro environment than similar companies faced five to 10 years ago,” he told TechCrunch.
DFJ Growth venture partner Ramin Sayar said his firm backed Endor because of its unique positioning. “As generative AI transforms coding practices, developers are generating vast amounts of code without thorough visibility and control,” he said. “Endor Labs is not only setting a new standard in application security — the team is creating a movement.”
Endor currently has 133 employees across its offices in Palo Alto and Bangalore. With fresh funding in hand, the company plans to expand its platform and scale its operations even further.
