Terra Security Raises $30 Million to Reinvent Penetration Testing with Agentic AI

[Pictured above: Terra’s founders. Credit: Tammy Malchi]

Israeli cybersecurity startup Terra Security has raised $30 million in a Series A round led by Felicis, with participation from Dell Technologies Capital and the security investors’ syndicate SVCI. The latest round brings the company’s total funding to $38 million. Alongside the investment, Terra announced the appointment of Gerhard Eschelbeck, former Google CISO, to its board of directors.

The financing comes just four months after the company’s seed round, which drew backing from SYN Ventures, LAMA Partners, Underscore VC, and prominent angel investors including Eschelbeck, Talon Security founders Ofer Ben-Noon and Ohad Bobrov, Google VP of Engineering Yossi Matias, and Sysco CISO Charles Tango.

Founded in 2024 by CEO Shahar Peled and CTO Gal Malchi, Terra Security aims to disrupt the traditional penetration testing model. Instead of relying on manual, periodic assessments, the company’s platform leverages Agentic AI—a “swarm” of specialized AI security agents that continuously execute thousands of advanced penetration tests. These agents tailor their activity to each organization’s risk profile and business context, detecting not only technical vulnerabilities but also complex logical flaws.

The process is supervised by a Human-in-the-Loop team of security experts, ensuring accuracy, reducing false positives, and adding professional context. Unlike legacy automated tools, which often fail to mimic real-world attackers, Terra combines the scale of AI with the precision of human penetration testers. The result is real-time, exploit-based insights rather than slow, one-off reports.

The company has already made headlines after taking first place in the 2025 AWS & CrowdStrike Cybersecurity Accelerator, co-hosted with NVIDIA. Judges included industry heavyweights such as CrowdStrike CEO George Kurtz, Amazon CISO CJ Moses, and NVIDIA CSO David Reber.

“Terra is replacing slow, manual penetration tests with real adversary simulation at unprecedented scale,” said Jake Storm, General Partner at Felicis. “We’re thrilled to back Shahar, Gal, and the team as they redefine the future of offensive security.”

Looking ahead, Terra plans to expand its platform into broader offensive security domains, including Red Teaming and enterprise-wide attack surface management. The fresh capital will support new hires in Israel and the U.S., strengthen the company’s AI agent capabilities, and scale onboarding for new customers—already including Fortune 500 organizations.

As co-founder and CTO Gal Malchi put it: “Penetration testing hasn’t changed in decades. We’re only at the beginning of what’s possible when you apply purpose-built AI to security testing.”