Terra Security Raises $8M to Redefine Penetration Testing with Agentic AI

/ AI, Application Security, Cyber Security, DevSecOps
Terra Security Raises $8M to Redefine Penetration Testing with Agentic AI

The News

Terra Security, a Tel Aviv- and New York-based startup focused on agentic AI-driven penetration testing, announced an $8M seed funding round led by SYN Ventures and FXP Ventures, with additional participation from Underscore VC and several noted angel investors. Terra’s platform is the first of its kind to use dozens of fine-tuned AI agents for continuous, scalable pen testing of web applications, combining human supervision with automated intelligence. To read more, visit the official announcement.

Analysis

According to industry analysts, by 2026, 60% of large enterprises will be using continuous automated red teaming (CART) and AI-enabled adversarial simulation tools to test exposure across hybrid environments. McKinsey predicts that agentic AI could reduce security operations center (SOC) workloads by 40–60% through intelligent automation. With the cybersecurity workforce shortage expected to reach 3.5 million unfilled roles by 2025 (Cybersecurity Ventures), tools like Terra’s help bridge the talent gap by using autonomous agents to perform high-impact, continuous offensive testing. Terra Security’s approach is at the intersection of this trend — blending AI scalability with human judgment to deliver next-generation cybersecurity readiness.

A Shifting Penetration Testing Market Driven by Automation and AI

The cybersecurity sector is rapidly evolving, with agentic AI poised to play a central role in transforming offensive security operations. Traditional penetration testing and red teaming have long been limited by resource intensity, high cost, and infrequent execution. These limitations often reduce their utility to compliance checkboxes rather than integral components of a proactive security posture. As organizations seek real-time and continuous threat exposure management, platforms like Terra Security offer an AI-native alternative that brings scale, repeatability, and adaptability to testing processes — all while keeping humans in the loop to ensure oversight, accuracy, and ethical guardrails.

Why This Matters to Application Security and DevSecOps Teams

Terra’s approach mirrors trends in the DevSecOps landscape, where AI agents increasingly augment security workflows and integrate with continuous delivery pipelines. Terra’s platform is said to not only mimic real adversaries, but do so more effectively than existing automated tools, continuously — meaning security gaps can be uncovered and addressed in real time rather than on quarterly cycles. This helps shift penetration testing left, allowing vulnerabilities to be discovered earlier and more frequently, and offering dynamic coverage that adapts as applications evolve.

The Historical Pain of Ethical Hacking, Now With a Solution

Historically, ethical hacking has been both cost-prohibitive and operationally constrained. Enterprise security teams often lack the headcount to run red team operations internally and face long delays and limited depth when outsourcing them. This has left critical blind spots, especially across web applications that are dynamic, complex, and uniquely tied to business logic. Terra addresses this pain by deploying fine-tuned agents customized per client, able to conduct deep business-contextual tests on demand. The hybrid approach, where agents work autonomously but are guided by skilled human professionals, increases trust and reliability in AI-led security practices.

A Model for the Future of Autonomous Security Agents

Looking forward, Terra’s platform could be the blueprint for broader adoption of agentic AI in enterprise security. By incorporating model fine-tuning, context-awareness, and multi-agent collaboration, Terra looks to elevate AI from a tool to a co-pilot. Their future roadmap — including agentic AI red teaming and expanding into full-stack network testing — represents a credible next step in the evolution toward autonomous, proactive cyber defense. For security leaders, this reflects a growing trend: replacing manual assessments with continuous, AI-driven attack simulation.

Looking Ahead

Agentic AI is reshaping cybersecurity, and Terra’s seed raise marks a pivotal moment in its mainstreaming for offensive security. As investors back agentic AI platforms with domain-specific fine-tuning and real-time adaptability, we can expect continuous pen testing to become the norm across the enterprise landscape.

With support from heavyweight investors like SYN Ventures and FXP Ventures — both highly active in cybersecurity — Terra is well-positioned to expand rapidly, improve its AI agents’ capabilities, and move toward red teaming and full network security. Their success may catalyze broader innovation in AI-native security platforms and encourage CISOs to rethink how human-AI collaboration can power secure, resilient organizations.

Author

  • Paul Nashawaty, Practice Leader and Lead Principal Analyst, specializes in application modernization across build, release and operations. With a wealth of expertise in digital transformation initiatives spanning front-end and back-end systems, he also possesses comprehensive knowledge of the underlying infrastructure ecosystem crucial for supporting modernization endeavors. With over 25 years of experience, Paul has a proven track record in implementing effective go-to-market strategies, including the identification of new market channels, the growth and cultivation of partner ecosystems, and the successful execution of strategic plans resulting in positive business outcomes for his clients.

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