The cyber sector continues to heat up with the announcement on Tuesday by cyber startup Bay that it has completed a $37 million funding round, bringing its total investment to $50 million in just nine months since its founding.
The Series A funding round was led by American venture capital fund Battery Ventures, which was founded in 1983 and is one of the oldest tech venture capital funds in the world, with participation from Micron Ventures, the investment arm of American chip manufacturer Micron, which is also a client of the company.
The round joins a $13 million seed round led by YL Ventures and Striker, and the company's investors include Assaf Rappaport, CEO of Wiz; Jeetu Patel, who serves as chief product officer at Cisco; and Dr. Manoj Apte, former chief strategy officer at American cybersecurity giant Zscaler.
The funding will be used by the company to increase its workforce, which currently numbers 35 employees, mostly in Israel. The bulk of the hiring is expected to focus on expanding product and engineering teams, alongside growing sales, marketing, and customer teams in the US and Europe.
Securing the growing use of AI agents
Bay has developed a platform that serves as a kind of work supervisor for AI agents; it identifies AI agents in the organization and examines in real time every action they are about to perform, based on the task they received and the context of actions already performed.
The system, according to the company, decides within milliseconds whether to allow the agent's action, block it, or forward it for human approval, all in accordance with the security policy defined by the organization. When the action is permitted, the agent continues to work without interruption. Thus, alongside checking agent actions, the system exposes security risks in the use of AI tools and integrates into existing security processes in the organization to enable their automatic remediation.
Bay reports that dozens of organizations worldwide in finance, insurance, technology, industry, and media use its platform, and its clients include corporate giants Wix, ClickUp, Micron, and Peloton, alongside other clients from the Fortune 100 list.
The company was founded as noted at the beginning of 2026 by Yuval Zacharia, who serves as CEO of Bay; Aner Morag, VP of product; and Boris Danilovich, VP of R&D.
Zacharia served as an intelligence officer in 8200 and previously served as research and AI manager at Hunters, leading the development of the product's AI capabilities. Morag transitioned from intelligence roles to offensive cyber in 8200 and was among the first employees at Noname Security, where he led the R&D and product departments. Danilovich was among the first employees of Preempt Security, which was acquired in the third quarter of 2020 by cyber giant CrowdStrike for $96 million. Following the acquisition, he served as a senior executive at CrowdStrike's R&D center in Israel.
Yuval Zacharia, CEO and co-founder of Bay: "We built Bay to secure all of an organization's AI usage in a single platform, enabling the organization to meet the challenge of growth and implement new tools faster and more securely."