XBOW secures $120 million and integrates AI pentesting with Microsoft
XBOW, a Seattle-based cybersecurity startup, has raised $120 million in a Series C funding round and expanded its partnership with Microsoft to embed AI-driven penetration testing into enterprise security workflows.
The latest funding, led by DFJ Growth and Northzone with participation from Sofina and Alkeon Capital, brings XBOW’s total capital raised to $237 million and pushes its valuation above $1 billion. The company, founded in 2024 by GitHub Copilot creator Oege de Moor and former Copilot engineers, now serves more than 100 clients including Moderna and Samsung Data Systems.
XBOW’s platform uses artificial intelligence to autonomously identify and validate software vulnerabilities. Unlike traditional tools, it produces reproducible exploit evidence rather than theoretical risk assessments, allowing security teams to prioritize real threats.
The company announced that its technology is being integrated into Microsoft Security Copilot and Microsoft Sentinel. The integration enables continuous penetration testing directly within Microsoft’s security ecosystem, allowing teams to launch automated tests and analyze results without leaving their existing interfaces.
The system includes a Pentest Manager agent to initiate tests, a Sentinel connector to stream validated findings into Microsoft’s data environment, and an analysis agent that correlates attack simulations with real-time telemetry to identify detection gaps.
Executives say the integration represents a shift in cybersecurity operations. By combining offensive testing with defensive monitoring tools, organizations can move from periodic assessments to continuous threat validation.
XBOW’s approach reflects a broader industry trend as cyber attackers increasingly use AI techniques. The company argues that automated offensive security tools are becoming essential for defending modern systems.
Its technology has already gained attention after topping the HackerOne global leaderboard, marking the first time an automated system outperformed human hackers on the platform.
With growing demand for real-time security validation and AI-powered defense tools, XBOW is positioning itself at the forefront of a new category in cybersecurity.
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