Artificial intelligence technology development and security continue to drive significant venture capital investment toward IT startups, with further coverage provided by CRN.
In October 2026, venture capital firms prioritized investments in AI infrastructure and security. Modal Labs secured the largest round with $750 million in Series D funding to support its platform-as-a-service compute cloud for machine learning. Cybersecurity remained a primary focus, with Upwind Security raising $400 million and Armadin securing $255.5 million to advance their respective runtime and offensive security platforms. Other notable funding rounds included Pigment, which raised $250 million for its AI-driven business planning software, and Hex Technologies, which secured $100 million for its data analytics workspace. Additionally,
Blacksmith raised $66 million to enhance continuous integration workflows, while startups such as Avante, Rein Security, Firefly and Asymptote Labs received capital to develop specialized AI agents, physical safety systems and runtime visibility tools. These investments reflect a broader industry shift toward securing AI infrastructure and automating complex enterprise operations. As companies integrate autonomous agents into their workflows, investors are increasingly backing platforms that provide governance, visibility, and performance optimization to mitigate risks and improve operational efficiency.
Source: CRN
