Israeli AI Security Startup Alice Raises $140 Million at $800 Million Valuation

Israeli artificial intelligence security company Alice, formerly known as ActiveFence, has completed a $140 million funding round led by Apax Digital. The round values the company at approximately $800 million and brings total investments since its founding to $280 million. Alice is approaching an annual recurring revenue (ARR) of $100 million, according to the company. Other investors in the round included Samsung, cybersecurity firm SentinelOne, Mortek Ventures, and Phoenix, alongside existing shareholders such as CRV, Grove Ventures, Norwest Venture Partners, Highland, Vintage, Calcalist, and NFX.

The funding round follows a major strategic shift and rebranding from ActiveFence to Alice seven months ago. Originally focused on detecting harmful content, fraud, and manipulation online, Alice has pivoted to securing AI systems, which has become a key growth driver. The company’s technology protects services used by over three billion users and collaborates with eight of the top ten AI labs developing advanced models, including Google, Anthropic, Nvidia, Meta, TikTok, and Amazon.

Alice does not develop general AI models but provides a security layer that tests and protects AI systems before and after deployment. Its "Red Teaming" approach involves expert researchers attempting to breach AI models to identify vulnerabilities and improve defenses. The company employs over 150 AI security researchers and continues monitoring AI behavior in real-world environments to prevent data leaks and regulatory breaches.

Founded in 2018 by Noam Schwartz, Yiftach Or, Alon Porat, and Eyal Daykan, Alice initially helped social networks and online platforms combat violent content, disinformation, and coordinated harmful activity. The rise of generative AI tools like ChatGPT in late 2022 accelerated the company’s shift toward AI security, as malicious actors began exploiting AI for phishing and misinformation at scale. Alice’s proprietary database, Rabbit Hole, catalogs attack patterns and harmful content to test AI systems against real-world threats.

The new funds will support expanding Alice’s development center in Israel, growing sales and marketing teams, and enhancing the Rabbit Hole database. The company currently employs around 400 people, mostly in Israel, with additional offices in New York, London, and Hanoi. CEO and co-founder Noam Schwartz emphasized the goal of enabling organizations to trust their AI systems to operate as intended by continuously challenging them with expert scrutiny.