Cybersecurity leaders today face an unprecedented challenge: AI-driven cyber threats evolve faster than traditional penetration testing methods can handle. Manual assessments, conducted periodically, leave organizations vulnerable between tests and burdened by unsustainable service costs. The need for continuous protection has never been clearer.
Terra Security addresses this urgent gap by introducing AI-powered, agentic penetration testing solutions. By transitioning from manual, periodic checks to continuous, automated monitoring, Terra Security ensures threats are identified and mitigated in real-time. This approach not only enhances security effectiveness but also transforms penetration testing from a costly service into a scalable, high-margin software solution, positioning businesses to stay ahead in a rapidly evolving cybersecurity landscape.
We’re thrilled to announce our investment as part of the Seed round for Terra Security, alongside co-leads, FXP and Syn Ventures. Notable angel investors including former Google CISO Gerhard Eschelback and Ofer Ben-Noon and Ohad Bobrov, founders of Talon Security.
Agentic AI: Making Proactive Security Accessible to All
Terra Security offers the first agentic AI-native web app penetration testing as a service. Unlike traditional solutions that rely heavily on manual labor and deliver point-in-time insights, Terra’s platform enables ongoing security validation that evolves with an organization’s infrastructure. When new vulnerabilities surface, its agents autonomously launch precise tests, guided by human experts through a human-in-the-loop mechanism for maximum accuracy and reliability with AI.
The market opportunity here is substantial. The proactive security and penetration testing market already exceeds $4 billion annually, yet it primarily serves the largest enterprises with the resources to afford these labor-intensive services. As attack surfaces become increasingly dynamic and complex, single-purpose tools and periodic assessments are insufficient to maintain robust security postures. This reality demands a fundamentally new approach that can only be achieved through intelligent automation.
Exceptional Founders Building the Future of Security
At Underscore VC, we’re founder-first investors who believe that the right team can transform industries. In Shahar Peled (CEO) and Gal Malachi (CTO), we’ve found leaders with the perfect combination of cybersecurity expertise, technical prowess, and go-to-market experience needed to execute on this ambitious vision.
We’ve known Shahar and Gal for some time and have watched them grow as leaders throughout their careers. Shahar previously served as VP of GTM at Jit.io, while Gal was Director of Engineering at BigID. Both have firsthand experience contributing to successful organizations and understand what excellence looks like. Their thoughtful approach to building Terra reflects their deep understanding of the market—starting with SaaS-enabled services and gradually productizing workflows to create a solution that complements existing systems while establishing the foundation for a comprehensive security platform.
Terra has already attracted early enterprise customers and Fortune 500 design partners who recognize the transformative potential of their approach. By transitioning from periodic to continuous security validation, from manual work to agentic AI, and from service margins to software economics, Terra is positioned to create a step-function improvement in how organizations manage their pentest programs.
What’s Next For Terra Security?
With this funding, Terra will accelerate product development and expand its team across engineering, security research, and go-to-market functions. The company is committed to building a platform that centralizes and scales entire security functions, delivering robust protection that evolves alongside emerging threats.
If you’re passionate about transforming cybersecurity through AI or are looking to strengthen your organization’s security posture, visit Terra Security’s website to learn more about their approach or explore open roles on their team.
We’re proud to partner with Shahar, Gal, and the entire Terra Security team on this journey to make advanced security capabilities accessible to all organizations.
