Capsule Security Ltd Raises $7 Million in Seed Funding
Capsule Security Ltd has announced a successful seed funding round, raising $7 million to advance its mission of securing AI agents through real-time runtime monitoring. The funding round was led by Lama Partners, with additional participation from Forgepoint Capital International Management Ltd.
Capsule Security, founded in 2025 by Naor Paz and Lidan Hazout, focuses on protecting AI agents by providing instant anomaly detection across workflows. This Israeli startup addresses what it calls the "runtime gap," the critical window between when an AI agent receives a prompt and executes an action. During this period, AI agents can potentially misbehave or be manipulated, posing significant security risks.
Founders' Background
Naor Paz, the Co-Founder and CEO, has notable experience from F5 Inc. and the Israeli military's Unit 8200. Lidan Hazout, the Co-Founder and CTO, previously served as vice president of research and development at SecuredTouch Ltd. and Transmit Security Ltd. Their combined expertise in security and AI positions Capsule Security to tackle emerging challenges in the field.
Paz stated: "AI agents are quickly becoming a new class of privileged user in the enterprise, except they can act at machine speed and they do not behave like deterministic software. That creates a dangerous gap between what security teams can govern today and what agents can do in production."
Strategic Use of Funds
The newly acquired funds will be used primarily to expand go-to-market efforts and accelerate product development. Capsule Security aims to enhance its runtime platform to better monitor AI agent actions in real time and enforce behavioral guardrails before actions are completed.
Industry Recognition
Before its formal launch, Capsule Security was recognized as one of the six finalists in the CrowdStrike Holdings Inc., Amazon Web Services Inc., and Nvidia Corp. Startup Accelerator at the RSAC security conference. The company was selected from nearly 1,000 startups to pitch its AI-native innovation.
Investor Insights
Ron Zalkind, founding general partner at Lama Partners and a board member at Capsule Security, commented on the investment: "Security leaders understand that legacy tools were never designed to interpret intent, context, and real-time behavior, which are essential for securing dynamic agentic environments."
Capsule Security's innovative approach and strong leadership team position it well to address the growing concerns around AI security, providing enterprises with the tools needed to manage and secure AI agents effectively.