Italian cybersecurity startup Exein becomes unicorn on physical AI wave
Rome-based cybersecurity company Exein has raised $270 million at a $1.7 billion valuation, positioning itself to protect physical AI devices from attacks. The company's valuation has grown thirtyfold in two years.
Italian startup Exein has joined Europe's unicorn club after closing a $270 million funding round led by Headline, valuing the company at $1.7 billion. Originally focused on securing internet-of-things devices, the Rome-based firm has expanded into protecting what it calls physical AI.
Founder and CEO Gianni Cuozzo says Exein's core idea is that every device should be able to defend itself, whether or not it's connected to a secure network. The company's newest product, Photon, provides runtime protection against attacks at the kernel level of a device, built through close partnerships with manufacturers and chip vendors.
Since its founding in 2018, Exein says it has helped secure more than 2 billion connected devices across sectors where cyberattacks could cause serious disruption, including aerospace, industrial automation, automotive manufacturing, energy, healthcare and semiconductors. The company expects continued growth as physical AI — robots, drones, self-driving cars and other edge devices running AI models — expands using much of the same supply chain.
The latest funding round was significantly oversubscribed, and Exein's valuation has risen thirtyfold since its Series B two years ago. Cuozzo notes that AI has also strengthened attackers' capabilities, since open-source models without safety guardrails make it cheaper and easier to target physical devices in new ways. Exein has observed a rise in what Cuozzo calls machine-speed attacks and is now developing a foundational model for physical AI security, using machine data and telemetry, with plans to launch it in the first quarter of 2027.
Exein intends to use the new capital for acquisitions to round out its product lineup and for hiring to accelerate expansion in the U.S. and Asia-Pacific, a region that already generates half of its revenue. The company reports 400% year-over-year growth, though maintaining that pace may prove difficult. The European Union's Cyber Resilience Act, whose reporting requirements took effect last week and which will fully apply from December 2027, could provide additional tailwinds by requiring manufacturers to secure digital products against cyber threats.
