As AI-generated code becomes increasingly prevalent in software development, security concerns are rising in tandem. According to a recent survey by Synk, over 50% of organizations encounter security issues with AI-produced code sometimes or frequently. Endor Labs, a startup that initially focused on securing open-source package dependencies, has pivoted to address this growing challenge, and its efforts have been rewarded with a $93 million Series B funding round.

The funding, led by DFJ Growth and participated by Salesforce Ventures, Lightspeed Venture Partners, Coatue, Dell Technologies Capital, Section 32, and Citi Ventures, values Endor at "orders of magnitude higher" than its Series A valuation, according to CEO Varun Badhwar. The startup has now raised a total of $163 million in funding. The proceeds will be used to expand Endor's platform, which claims to review code, identify risks, recommend precise fixes, and apply them automatically.

Endor's platform is designed to integrate with AI-powered programming tools like Cursor and GitHub Copilot, scanning code as it's written and flagging potential security issues. The startup has already seen significant traction, with its customer base including OpenAI, Rubrik, Peloton, Snowflake, Egnyte, and Dropbox. Endor now protects over 5 million applications and runs over a million scans each week for its customers.

The company's pivot towards AI-generated code security was driven by growing demand from its customers. "We saw a huge opportunity to help companies secure their AI-generated code, and we decided to pivot our focus towards this area," said Badhwar. The move appears to have paid off, with the startup experiencing 30x annual recurring revenue growth since its Series A round in 2023.

Endor's platform is particularly relevant in today's software development landscape, where AI-powered tools are increasingly being used to generate code. "As generative AI transforms coding practices, developers are generating vast amounts of code without thorough visibility and control," said Ramin Sayar, venture partner at DFJ Growth. "Endor Labs is not only setting a new standard in application security – the team is creating a movement by launching their expanded platform."

The startup's success is also a testament to its ability to adapt to changing market conditions. Endor came out of stealth in October 2022, a challenging time for startups, but has managed to thrive despite the macroeconomic headwinds. "We raised now because we're seeing strong momentum, and this lets us double down on delivering outcomes for our customers," said Badhwar.

With its expanded platform and significant funding, Endor is well-positioned to tackle the growing security challenges posed by AI-generated code. As the use of AI-powered programming tools continues to proliferate, the need for robust security solutions will only continue to grow. Endor's innovative approach and commitment to securing AI-generated code make it an important player in this emerging space.