Obsidian Security raises $85 million as AI demand fuels cybersecurity boom

Obsidian Security raised $85 million in Series D funding at a $1.1 billion valuation, underscoring how quickly AI adoption is expanding the market for software that secures corporate apps, identities and automated workflows. Crescent Cove Advisors led the round, with participation from Greylock Partners and Menlo Ventures.

The company said the new capital will help it push deeper into a security category that is becoming more urgent as businesses connect AI agents and AI tools to internal systems. Obsidian’s own announcement said the money is meant to fuel “agentic productivity, securely,” a phrase that captures the pitch now winning over investors: AI can speed up work, but only if companies can control what those systems can access.

Founded in 2017, Obsidian built its platform around third-party applications used in modern enterprises, including Microsoft 365 and Salesforce. The company says customer data now lives across systems such as Salesforce, Workday and ServiceNow, alongside more than 35,000 third-party enterprise apps. That sprawl creates more paths for credential theft, misconfiguration and unauthorized access, especially as companies add machine-to-machine connections and AI-driven automation on top of existing cloud software.

The round also shows how capital is flowing toward vendors that can link cybersecurity directly to the AI boom rather than treating AI as a side feature. Obsidian is selling visibility and control for the place where work now happens: SaaS apps, identity tools, data platforms and AI agents that need access to all three. As boards and chief information officers push to deploy AI more broadly, those control points are becoming harder to ignore.

Obsidian previously raised a $90 million Series C round on April 14, 2022, led by Menlo Ventures, Norwest Venture Partners and IVP, bringing its total funding at the time to $119.5 million. SecurityWeek said the latest investment lifted Obsidian’s total funding to more than $200 million. The new financing gives the company more room to expand product development, sales and customer support as demand rises for security tools built for the AI era.