Ex-Palantir engineer raises $40M for cyber startup Outtake, with backing from Microsoft CEO Nadella

Alex Dhillon, a former engineer at Palantir, has embarked on a new journey with his cybersecurity startup Outtake, securing a significant $40 million in funding. Notably, this round has seen participation from prominent figures, including Microsoft CEO Satya Nadella, who is not only a backer but also an angel investor. Founded in 2023, Outtake has quickly established itself in the cybersecurity landscape. The startup utilizes autonomous AI agents to help businesses swiftly identify and eliminate cyber threats, such as phishing attacks, across various platforms, including email verification services. Dhillon remarked, "We're headed towards this world of always-on security. You need agent tech solutions like Outtake, defending your neighborhood." The funding round was spearheaded by venture capital firm Iconiq, with additional support from CRV, S32, and several angel investors, including Nadella and Nikesh Arora, CEO of Palo Alto Networks. Dhillon has not disclosed the company's current valuation; however, he revealed that Outtake has achieved a remarkable sixfold increase in annual recurring revenue year over year, with its systems having scanned an impressive 20 million cyber threats in the past year. The startup's growth trajectory is further highlighted by a tenfold increase in enterprise customers. Dhillon stressed the growing complexity and speed of cyber threats due to advancements in AI, stating that Outtake is focused on creating a "trust layer for the Internet." Murali Joshi, a general partner at Iconiq, is set to join Outtake's board and highlighted the company's unique position in the market. "What they've built, from a product perspective, is so fundamentally differentiated relative to everything else that's been on the market," he told CNBC. Outtake's technology is already being utilized by a diverse array of clients, including AppLovin, various federal agencies, luxury retail brands, and prominent AI laboratories. With the fresh capital, Dhillon plans to expand the company's go-to-market teams, emphasizing the need for robust defenses against persistent cyber threats. "We need agents manning the walls, because we're getting hammered every day," he expressed. "That's, frankly, what's both thrilling and frightening about our space, and in that lies opportunity." The recent funding follows an earlier Series A round where Outtake raised $16.5 million in April, along with a $3.5 million seed round, further showcasing its rapid ascent in the cybersecurity domain.