Dam Secure Raises $4M to Secure AI-Generated Code for Enterprises

AI security startup Dam Secure has secured 4 million dollars in seed funding to tackle the growing risks associated with AI-generated code. The round was led by Paladin Capital Group, a prominent investor in cyber and advanced technologies. This capital injection aims to help organizations manage the security vulnerabilities created when large language models produce code at scale.

Enterprises are increasingly adopting AI coding assistants to boost developer speed, but this often introduces dangerous logic gaps. Unlike traditional bugs, these gaps represent code that works correctly but fails to meet basic security expectations. Industry research suggests that without constraints, AI systems can introduce vulnerabilities in up to half of the code they generate.

Dam Secure offers a platform built around an engine that allows security requirements to be defined in plain English. This natural language approach enables teams to enforce rules like "customer data must be encrypted at rest" across massive codebases. By translating simple commands into automated guardrails, the platform prevents flawed logic from reaching production.

The startup was founded by Patrick Collins and Simon Harloff, both former executives from Zip Payments and Secure Code Warrior. Their combined experience in product security and fintech provided the foundation for this technical architecture. This deep industry knowledge has already attracted significant interest from customers across various vertical markets. Mourad Yesayan, Managing Director at Paladin Capital Group, will join the company board of directors. The funding will be used to accelerate product development and expand go-to-market efforts throughout the upcoming year. This expansion aims to provide a more effective alternative to traditional security tools that generate excessive noise in modern development environments.