Bay’s team in Tel Aviv. Credit: Bay Bay, a Tel Aviv startup that vets AI agent actions before they run, came out of stealth on Tuesday with $50m. It is less than a year old. It says it already has dozens of enterprise customers, including Micron, Peloton, ClickUp and Wix.
The total combines a $37m Series A led by Battery Ventures and a $13m seed round that had not been announced. YL Ventures and Striker Venture Partners led the seed, Bay said in a statement. Micron Ventures, Microsoft’s venture fund M12 and Wiz chief executive Assaf Rappaport joined the Series A. Bay first disclosed the round to Axios Pro.
An agent that meant well The founders say the idea came from their own work. One of their coding agents tried to expose a cloud environment to the internet so it could finish a test. No one had hacked it. It used permissions it legitimately held to reach a legitimate goal, in a dangerous way.
That is the gap Bay sells into. Its software checks each action an agent proposes against the whole session. It then decides locally, in milliseconds, whether the action can go ahead. It can allow the action, block it, or send it to a person for approval, Globes reported.
Bay says it learns from how a company’s agents behave. Security teams then do not have to write a rule for every new agent or tool. The company says it installs across employee devices, cloud infrastructure and SaaS apps in under five minutes. It needs no permanent endpoint agent, kernel driver or network proxy.
It also maps the AI tools in use and the MCP servers agents use to reach data and other software. “If you’re a security leader at an enterprise today, you’re likely facing one of two realities: either AI agents have already spread across your organization and it’s the Wild West, or your leadership has mandated an enterprise-wide AI rollout by the end of the year,” said Yuval Zacharia, co-founder and chief executive of Bay. Unnamed customers and a crowded field The headline of Bay’s announcement says Fortune 100 companies used its platform to triple their use of autonomous AI agents. The company did not name those customers or say how it measured the figure, and TNW has not verified it. One named customer is also an investor.
Micron’s venture arm joined the round, and a Micron venture director gave a supporting quote in the release. Bay also enters a busy market. In the past five months, Zenity raised $125m, Straiker raised $64m, NeuralTrust raised $20m and Asymptote Labs raised $5.5m. All four sell ways to watch or control what AI agents do.
Bay’s lead seed investor named the competition himself. “We evaluated a crowded field of companies addressing AI agent security, and Bay stood out because it can understand and control individual agent actions, from the endpoint to the cloud, while fitting into infrastructure enterprises already use,” said Yoav Leitersdorf, managing partner at YL Ventures. The team behind it Zacharia founded Bay with chief product officer Aner Morag and Boris Danilovich, its vice president of R&D. Zacharia led a 50-person department in Unit 8200, the Israeli military intelligence unit. She later ran research and AI at security firm Hunters.
Danilovich led about 90 engineers at CrowdStrike. Morag was one of the first employees at API security company Noname Security, where he became vice president of product. Bay has 35 employees, most of them in Israel, according to Globes. It plans to spend the money on product and engineering hires and on sales, marketing and customer teams in the US and Europe.
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