Italian cybersecurity startup Exein has raised $270 million at a $1.7 billion valuation. The investment focuses on the growing, critical need for physical AI security. The company aims to secure robots, drones, vehicles, and other AI-powered machines.
The round was backed by new investors including Sofina, Goldman Sachs, and the European Investment Bank Group. Other participants included the European Tech Champions Initiative, KfW Capital, and T.Capital.
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Existing investors including Balderton, HV, Intrepid Growth Partners, 33N Ventures, Lakestar, Supernova Invest, Blue Cloud Ventures, and Geodesic Capital also participated. The round closed significantly oversubscribed.
Expanding Physical AI Security Infrastructure
Exein plans to use the funding to expand in the US and Asia-Pacific. They are also developing a dedicated security layer for “Physical AI”—systems that perceive, make decisions, and act in the physical world.
Founded in 2018, Exein started by securing the software and firmware that power connected devices. Its technology operates at the device level, allowing security controls to detect and respond to threats in real time.
The company reports its technology is already deployed across more than 2 billion devices globally. Its industry relationships include companies such as Nvidia, Leonardo, AWS, MediaTek, and Arm.
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The Threat Landscape for Connected Machines
As AI moves into robots, drones, and industrial equipment, cybersecurity risks are no longer limited to data theft. A compromised machine can potentially affect physical operations. Exein sees around 5,000 new non-repetitive attacks a week across its network, five times last year's volume.
Exein is developing a proprietary foundation model trained on machine telemetry. The company says this will help autonomous security agents respond to threats without human intervention. Its new agentic security architecture is expected by late 2026.
Global Expansion and Future Growth
The company offers runtime protection through its Photon architecture, operating at the kernel level to block malicious execution. The broader goal is to move cybersecurity closer to the machines themselves rather than relying on centralized systems.
The latest round reflects a sharp increase in valuation, more than doubling from $770 million nine months ago. Exein is establishing its APAC headquarters in Taiwan and expanding its US presence. Alongside the equity, Exein is expanding its revolving credit facility led by J.P. Morgan to support potential acquisitions.
Why it matters to MENA startups
The rise of physical AI security is creating a new market for machines that act in the real world. This is critical for the MENA region as it invests in autonomous transportation and smart infrastructure.
Securing these systems requires protection at the device level, moving beyond conventional cloud security. This funding highlights a massive opportunity for startups building infrastructure for the physical deployment of AI.
Engagement
