The software supply chain, a critical component of modern software development, has become increasingly precarious, with 88% of companies believing poor security poses an "enterprise-wide risk" to their organizations. To address this issue, startup Socket has raised $40 million to develop tools that detect security vulnerabilities in open-source code.

Socket's solution, a scanner that identifies malicious activity in open-source components, aims to mitigate the risk of software supply chain attacks, which could cost the economy almost $81 billion in lost revenue and damages by 2026. The platform also integrates with generative AI APIs to generate summaries of vulnerabilities and checks for proper licensing of open-source code.

The startup's founder, Feross Aboukhadijeh, a renowned open-source maintainer and web security lecturer, believes traditional security tools are insufficient to address the challenges of modern software development. With the software supply chain security platform market expected to grow to $3.5 billion by 2027, Socket is well-positioned to capitalize on this trend.