The AI startup lawmakers consulted on TikTok’s and DeepSeek’s privacy risks raised $14 million. Read its pitch deck.
**Feroot: Pioneering AI-Driven Cybersecurity for Compliance in the Digital Age**
In an era where digital development is marked by rapid app and website creation—often termed “vibe coding”—the importance of cybersecurity and compliance with privacy regulations cannot be overstated. Feroot, a Canadian cybersecurity startup, is stepping up to the challenge by leveraging artificial intelligence to ensure that companies adhere to stringent privacy laws, including the European Union’s GDPR. Recently, Feroot secured $14 million in a Series A funding round led by True Ventures, with notable contributions from Y Combinator, Preface Ventures, and Industry Ventures. This funding will bolster their mission to help businesses navigate the complexities of compliance, particularly in a landscape where noncompliance can lead to severe financial penalties.
Feroot’s innovative platform employs AI agents that conduct compliance reviews in mere seconds, drastically reducing the time and resources typically required for manual audits. CEO Ivan Tsarynny emphasized the financial burden of maintaining a noncompliant website, which can incur litigation costs and hefty fines. While larger corporations may have dedicated teams for compliance checks, startups often lack such resources, making Feroot’s solution particularly valuable. The AI agents are designed to scan for violations across over 50 privacy regulations, enabling companies to identify and rectify compliance issues swiftly. This capability is not just a boon for businesses; it has also caught the attention of lawmakers in Washington, D.C., who have referenced Feroot’s research in their assessments of national security risks associated with popular apps like TikTok and DeepSeek.
With a growing client roster that includes major players like Reddit, Forbes, and Xerox, Feroot is poised for expansion. The recent funding will allow the company to enhance its engineering capabilities, open new offices, and extend its reach into international markets such as the Middle East and Southeast Asia. As the cybersecurity landscape continues to evolve, Feroot’s commitment to providing an automated, AI-driven approach to compliance positions it as a key player in the industry. The startup’s pitch deck outlines its vision: a continuous, always-on AI agent that not only simplifies the compliance process but also ensures that businesses can focus on innovation without the looming threat of regulatory repercussions.
Feroot’s CEO Ivan Tsarynny.
Courtesy of Feroot.
Feroot, a cybersecurity startup, helps companies comply with privacy regulations using AI.
The Canadian company’s research played a part in US legislation about TikTok and DeepSeek.
Read the pitch deck Feroot used to raise its recent $14 million Series A investment.
In the
age of vibe coding
, almost anyone can quickly spin up a basic app or website.
But that doesn’t mean your app is secure. Working with AI as your
code assistant
can lead to a product that’s pretty on the outside and riddled with risk on the backend.
If your code fails to comply with modern privacy laws and other regulations, such as
the European Union’s GDPR rules
, for example, it could lead to a lawsuit or a fine.
Enter Feroot, an AI startup that scans websites and apps to make sure their code is up to snuff with all the latest legal requirements. The Canada-based company just raised $14 million in a Series A round led by True Ventures, with participation from Y Combinator, Preface Ventures, and Industry Ventures.
“Having a noncompliant website is really expensive because of litigations, penalties, and enforcements,” Feroot’s CEO Ivan Tsarynny said. While large companies hire teams to audit every inch of their digital footprints, startups typically lack the same resources. Feroot’s AI agents can complete compliance reviews in seconds, Tsarynny said, which eliminates a key growing pain for young companies.
Feroot’s AI agents scan code to check for violations of over 50 different privacy laws and regulations related to consumer information,
health data
, and other personally identifying details. Ultimately, the humans at a company are responsible for signing off on compliance, but Feroot’s tools can help them spot issues more quickly.
Feroot’s work has grabbed the attention of legislators in Washington, DC, who cited the company’s research in their national security reviews of
apps like TikTok
and DeepSeek. In February 2024, Tsarynny testified on privacy risks before the US-China Economic and Security Review Commission.
Feroot, which has raised $25 million to date, went to investors for its Series A with a simple pitch: AI can save
security chiefs
and their teams “tens of thousands of hours of work,” Tsarynny said.
It’s not the only
cybersecurity company
utilizing AI to meet its clients’ demands. Other security startups include DataGrail and Reflectiz, another website security startup, which recently announced a $22 million Series B funding round.
Feroot has racked up a client list of media and tech companies, including Reddit, Forbes, and Xerox. With its fresh funding, Feroot is focused on hiring more
engineering talent
, opening additional offices, and expanding into markets such as the Middle East and Southeast Asia, Tsarynny said.
Read the pitch deck Feroot used to raise its $14 million Series A:
Note: Feroot redacted several slides from the pitch deck, as well as some details, so that the document could be shared publicly.
Feroot’s deck starts by introducing what it does
Feroot
Here’s what the slide says:
Always-on AI Agent platform
that keeps websites, web and mobile applications secure and compliant with 50+ regulations, standards and laws.
It lists out several regulations websites need to consider
Feroot
Here’s what the slide says:
Non-compliant websites cost 10’s to 100’s of millions of dollars.
Litigators and regulators hold companies liable for websites violating data privacy laws. Insurers deny coverage for non-compliance, citing negligence clauses.
Compliance sprawl with 50+ regulations is increasingly unmanageable, costing 7-8 $ figures
The slide lists several regulations, such as HIPAA, which protects the privacy of medical records.
It emphasizes how compliance is taxing on ‘human employees’
Feroot
Here’s what the slide says:
Making and keeping websites compliant with 50+ regulations is
expensive, nearly impossible, and a huge pain for Human Employees:
Discovery takes forever, and it’s super tough and riddled with errors.
Data is scattered across many silos, not centralized, and always outdated.
It takes months of FTE team’s time to manually assess compliance with 50+ laws and standards.
Results are full of errors. Ongoing manual fixes, redos, and support of many systems are expensive.
It then introduces Feroot’s AI agents
Feroot
Here’s what the slide says:
Feroot AI Agents get it done in 45 seconds.
Feroot brings AI to compliance and security processes of all Payment Pages, Healthcare Pages, iFrames, Websites, and Web Applications — replaces manual work, errors and overhead costs with continuous automation.
The slide also includes news clips from Feroot’s report on DeepSeek.
Feroot explains how its AI agents work
Feroot
Here’s what the slide says:
Feroot AI security and compliance agents work 24/7.
1. Deep Discovery: Feroot AI Agents continuously scan and provide up to date, context-rich factual insights.
2. Single Source of Truth: They maintain one database with all real-time insights of all digital assets and across time.
3. Reasoning and GenAI: Provides hyper-precise compliance verification and security analysis beyond human capability.
4. Proactive and Always-On 24/7/365 Protection: AI Agents don’t take time off, no sick days, and no vacations.
The deck includes product imagery to explain how it works
Feroot
“Security teams love Feroot’s 1-click protection,” the slide says. It includes several charts and product images.
The deck concludes by introducing Feroot’s team
Feroot
The slide introduces Ivan Tsarynny, Feroot’s CEO and cofounder, and Vitalily Lim, CTO and cofounder.
It also lists investors like True Ventures, Y Combinator, Preface Ventures, Haystack, and Stonemill Ventures. The slide lists several individual angel investors, too.
The last side summarizes what Feroot does one last time
Feroot
Read the original article on
Business Insider
