Hypernative, a security firm specializing in web3 technology, has raised $40 million in a Series B funding round co-led by Ten Eleven and Ballistic Ventures. Additional participants in the round included StepStone Group, Boldstart Ventures, Quantstamp, and IBI Tech Fund. The company plans to use the new capital to expand its team and enhance its AI-powered transaction monitoring and security services, which include fraud prevention and wallet-level transaction protection.

Hypernative Raises $40 Million Series B

Hypernative Raises $40 Million

The firm utilizes AI-powered detectors, transaction simulators, and deep analysis of on-chain and off-chain data to identify and mitigate threats in real time. According to Hypernative, its security services currently protect more than 200 web3 projects, securing assets valued at over $100 billion. The company reported detecting over $2.2 billion in losses caused by hacks, exploits, phishing, and fraud in the past year, marking a 22 percent increase from the previous year. The recent $41.4 billion hack of Bybit in February highlights the ongoing challenges faced by the web3 ecosystem regarding security.

Security Challenges and Industry Context

Hypernative’s CEO and co-founder, Gal Sagie, described web3 as being at an inflection point with clearer regulations emerging and increased institutional adoption driven by stablecoins and tokenized assets. However, he emphasized that security remains a significant obstacle to wider adoption of web3 technologies. Sagie stated that Hypernative’s mission is to close this gap by providing preventive security solutions that build trust at the infrastructure level for developers, users, and institutions alike.

Hypernative Raises $40 Million Series B

Company Background and Growth

Hypernative launched publicly in January 2023 after completing a $9 million seed funding round led by Boldstart Ventures, with participation from Blockdaemon, Alchemy, Borderless, CMT Digital, and Nexo. The company followed this with a $16 million Series A round in September 2023, supported by investors including Quantstamp, Boldstart Ventures, IBI Tech Fund, CMT Digital, Bloccelerate, and Borderless Capital. The latest Series B round further solidifies Hypernative’s position in the web3 security space, reflecting increasing investor confidence in solutions aimed at securing blockchain ecosystems.

Outlook for Web3 Security

As web3 technology continues to grow, security remains a critical concern for projects and investors. Hypernative’s AI-driven approach to detecting threats and preventing fraud is positioned to address some of these challenges. The company’s recent fundraising underscores the importance of security infrastructure in enabling broader adoption of web3 applications, gaming, and digital assets.