Hypernative Raises $16 Million in Series A Funding

Hypernative, a web3 security firm focused on identifying and preventing hacks, has successfully raised $16 million in its Series A funding round.

Funding Details

The funding round was led by Quantstamp, another web3 security firm, with participation from Bloccelerate VC, Boldstart Ventures, Borderless Capital, CMT Digital, IBI Tech Fund, Re7 Capital, among others, according to Hypernative’s announcement on Tuesday.

Hypernative embarked on raising funds for this Series A round earlier this year and concluded it by mid-2024, as stated by co-founder and CEO Gal Sagie in an interview with The Block. This round, structured as equity, elevates Hypernative’s total funding to $27 million after including a $9 million seed round in January 2023, followed by a $2 million seed extension from strategic partners. Sagie opted not to disclose Hypernative’s valuation.

What is Hypernative?

Hypernative provides a real-time risk monitoring platform that aims to detect hacks before they occur, allowing users to take preventive action. The platform monitors both on-chain and off-chain data, utilizing AI and machine learning tools to identify over 200 types of risks, including smart contract hacks, bridge security issues, and market manipulations.

Since its launch in September 2022, Hypernative has serviced over 120 clients, which include prominent names like Uniswap, Solana, Chainalysis, Chainlink, Circle, Consensys, and Galaxy. Sagie asserts, “We are the first and only security solution in production, directly connected with a Layer 2 sequencer to stop hacks and exploits from the chain infrastructure.”

According to Immunefi, crypto losses from hacks and scams have exceeded $1.2 billion this year, marking a 15.5% increase from the previous year. Major incidents include DMM Bitcoin’s loss of $305 million in June and WazirX’s loss of $235 million in July.

When questioned whether Hypernative could have prevented the hacks at WazirX and DMM Bitcoin, Sagie expressed confidence: “Over the last two years, Hypernative could have detected most, if not all hacks/exploits that occurred in the space, with 99.5% preventability.” Hypernative claims it has saved over $100 million in funds to date, detecting 99.5% of hacks last year with a false positive rate of less than 0.001%. In 99% of cases, the attacks were detected more than two minutes before the first transaction.

Hypernative Plans

With the new funding secured, Hypernative, based in Tel Aviv, is looking to expand into the Asia Pacific region and the U.S. Sagie indicated plans to grow their team of 30 by recruiting in various functions including research and development, customer support, sales, and marketing.

“We also want to ensure the Hypernative platform is available on any chain out there. Currently, we support the largest number of chains, including non-Ethereum Virtual Machine (EVM) chains like Solana, Cosmos, Starknet, Stellar, Stacks**, and 40 other EVM-based chains,” Sagie added.

The Funding Newsletter: Stay updated on the latest crypto funding news and trends with my bimonthly newsletter, The Funding. It’s free. Sign up here!