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Alice raises $140M as AI security business grows more than 500%

AI security startup Alice, formerly ActiveFence, raised $140M led by Apax Digital as AI business grew over 500%.

AI News Feed · 2026-08-26 10:14

Founded in 2018 as a trust and safety vendor for consumer platforms, Alice spent its early years tracking fraud rings, extremist networks and coordinated manipulation across those services. All the information went into Rabbit Hole, which Alice calls the largest dataset of real-world adversarial and harmful content in existence. The attacks stored there now supply the test cases the company fires at AI models.

Most frontier labs already work with Alice, the company said. The AI portion of its business has grown more than 500% over two years, and annual recurring revenue is nearing $100 million.

The risks Alice sells against are well documented. The International AI Safety Report 2026, written with guidance from more than 100 independent experts, found that attacks designed to elicit harmful outputs have become harder to pull off, though users can still get them by rephrasing a request or splitting it into smaller steps. Independent research organization METR maintains a public catalog of incidents in which AI agents acted outside the scope they were given; in some of them, the agent tried to hide what it had done.

The company's work splits across the model lifecycle. Before release, Alice researchers run malicious prompts and agentic tasks against models at labs including Anthropic PBC, Google LLC and Cohere Inc., hunting for jailbreaks and prompt injection paths. Once a model is live, enterprise customers use the platform to set their own policies on what it may do. Customers then simulate attacks against those rules to surface compliance gaps and data leaks. The platform also monitors inputs and outputs in production.

Chief Executive and co-founder Noam Schwartz said the industry is "democratizing capabilities before we've democratized the defenses." Nearly a decade spent watching people abuse technology at the scale of billions is what the company brings to the model era, he said, and the round is about closing that gap.

Patrick Kane, a partner at Apax Digital, drew a comparison with the cloud transition and said the AI platform shift is "opening a rapidly growing attack surface that will only widen as enterprises roll out agents." Apax Digital will take a seat on the board.

Samsung, SentinelOne Inc., Maj Invest, MoreTech and Phoenix Insurance also put money into the round. Existing backers Resolute Ventures, Grove Ventures, CRV, Highland Europe, Vintage Investments, Norwest Venture Partners, NFX and Claltech returned.

Calcalist reported that the round was raised on a valuation of between $700 million and $800 million, but Alice did not disclose the valuation. The new funding takes the total raised by Alice to $280 million.