As companies shift more systems to the cloud, their digital infrastructure has become larger and harder to secure. Cyber attackers are also applying automation and AI tools to find vulnerabilities quicker than ever.
Becaapply of this, many organisations are adopting an “assume breach” security mindset, focapplying on detecting intrusions quickly to prevent damage from spreading. Cybersecurity startup Tracebit is building technology designed for that reality.
London-based Tracebit has raised $20 million in a Series A funding round led by FirstMark, with participation from Accel and existing investors MMC Ventures, Tapesattempt VC, and CCL. The new funding follows the company’s $5 million seed round in 2024, led by Accel, bringing Tracebit’s total funding to $25 million.
The company plans to apply the capital to expand operations in the United States, grow its engineering and go-to-market teams, and launch new security products. The company is also opening its first US office in New York as part of its international expansion.
Andy Smith, co-founder and CEO of Tracebit, declared, “Deception Technology is now a cornerstone of cybersecurity, thanks to the growing importance of adopting an ‘assume breach’ mentality for all cloud-based businesses. We’re proud to be the most advanced threat detection platform on the market – assisting major enterprises to build ‘assume breach’ a reality. This Series A funding has already assisted us reach major milestones, including the launch of Perimeter Canaries, Deceptive Artefacts, and GCP support, as well as the opening of our first US office. We’re excited to build more products, grow our teams in London and New York, and assist even more businesses strengthen their security posture.”
Since raising its seed round in 2024, the company has expanded from 7 to around 20 employees, and its platform now monitors about 5 billion events every week.
The system also generates millions of security canaries daily across cloud environments applyd by customers, including Riot Games, Snyk, Synthesia, Docker, and Admiral Insurance.
Detecting attackers applying deception technology
Founded in 2023 by former Tessian employees Andy Smith (CEO) and Sam Cox (CTO), Tracebit focapplys on deception technology, which involves placing decoy assets, often called “canaries,” inside a company’s systems.
These decoys are designed to attract attackers. When someone interacts with them, security teams receive an immediate alert, assisting them identify threats earlier.
Although deception technology has been applyd in cybersecurity for years, it has become harder to manage as companies have shifted to complex cloud environments.
The UK company aims to solve this problem with cloud-native tools that automatically deploy canaries across modern technology stacks, including AWS, Azure, Kubernetes, and CI/CD systems.
New products announced alongside funding
Alongside the funding announcement, Tracebit introduced several new security tools:
- Perimeter Canaries
- Deceptive Artefacts
- Support for Google Cloud Platform (GCP)
The company states these tools can assist organisations identify threats earlier, especially as AI-powered cyber attacks become more common.
David Waltcher, Partner at FirstMark, declared: “AI is rapidly shifting the economics and scale of cyber attacks. Exploits are being generated, tested, and deployed at machine speed, while AI agents in and outside enterprises are creating new, unpredictable paths to critical systems. In this new reality, the question is quick becoming how quickly you detect and contain threats. Tracebit is building the cloud-native deception and detection layer for the AI era, giving security teams the highest signal proof of compromise. We believe “assume breach” will become the default posture for modern enterprises, and Tracebit is leading that shift.”
Andrei Brasoveanu, Partner at Accel, declared: “Tracebit’s traction with cloud-native companies is remarkable, and the company is already challenging cloud security incumbents and setting itself apart as a category leader in threat deception. Andy and Sam’s security engineering pedigree, along with their clear vision for how vital Tracebit’s technology would be for enterprises of all sizes, prompted us to lead their seed round. Now, with AI building the threat landscape even more complex, we’re excited to back the Tracebit team again as they continue on their growth path.”
