San Francisco-based cybersecurity startup Archipelo has emerged from stealth mode with a significant $12 million in funding to tackle a critical gap in enterprise cybersecurity: securing AI-generated code. The company's platform, focused on Developer Security Posture Management (DevSPM), aims to provide a window into the security of AI-written software, a growing concern as more code is being written by machines.

The funding, which includes an unannounced $4 million pre-seed and an $8 million seed round led by Dell Technologies Capital, will be used for product expansion and go-to-market efforts. Archipelo's CEO and co-founder, Matthew Wise, emphasized the need for a solution that enables enterprises to observe and monitor all instances of AI coding usage, citing the risks associated with AI-generated code.

Human error is estimated to be responsible for over 74% of security breaches, according to the Verizon DBIR 2023. However, with AI-generated code, the issue becomes vastly more complex. Archipelo's platform is designed to proactively secure both human and AI-driven code creation before security vulnerabilities reach production.

The DevSPM platform sets Archipelo apart from competitors in the "cloud-to-code security" space, including Palo Alto Networks (Prisma Cloud), Wiz, MSFT (Defender), GitHub, Gitlab, Snyk, Checkmarx, and Veracode. While these companies are still developing the capability to cover AI agents and AI coding tools during development, Archipelo's platform puts the developer – whether human or AI – under the microscope to monitor software risks before they become incidents.

Archipelo's customer base includes Fortune 500 enterprise customers in banking, healthcare, and defense, although the company is not yet disclosing specific names due to ongoing deployments. The seed round also saw participation from notable investors, including Zoom CEO Eric Yuan, Andy Bechtolsheim, Bill Tai, David Weisburd (10X Capital), Gil Penchina, Ed Roman (Hack VC), Anima Anandkumar, Samsung NEXT, and Nima Capital.

Wise clarified that Dell's involvement is a standard VC seed round, rather than a strategic investment, and that the company is not yet a customer. As Archipelo continues to expand its platform and customer base, its focus on securing AI-generated code is likely to resonate with enterprises grappling with the risks and benefits of AI-driven development.

In the broader context, Archipelo's emergence highlights the growing importance of addressing AI-generated code security in the enterprise. As AI becomes increasingly integral to software development, the need for solutions that can effectively monitor and secure AI-written code will only continue to grow. Archipelo's innovative approach to DevSPM positions the company as a key player in this critical area of cybersecurity.