In the rapidly evolving landscape of artificial intelligence (AI), enterprises are grappling with the dual challenges of harnessing AI’s potential while mitigating associated security risks. Addressing this critical issue, Lithuanian entrepreneurs Tomas Okmanas and Eimantas Sabaliauskas have propelled their latest venture, Nexos.ai, into the spotlight by securing a €30 million Series A funding round, approximately equivalent to $35 million. This substantial investment underscores the industry’s confidence in Nexos.ai’s mission to enable secure AI adoption within enterprise environments.
Founders’ Background and Vision
Okmanas and Sabaliauskas are renowned for their successful establishment of Nord Security, the parent company of NordVPN, valued at $3 billion. Their extensive experience in cybersecurity has provided them with a deep understanding of the complexities involved in protecting sensitive data. With Nexos.ai, they aim to bridge the gap between the promise of AI and the imperative of data security. Okmanas articulates the urgency of their mission, stating, The biggest corporate data leak is currently in the making, as employees upload sensitive information to large language models (LLMs). Rather than advocating for a ban on AI usage, Nexos.ai aspires to function as a neutral intermediary—a Switzerland for LLMs—ensuring that enterprises can leverage AI’s productivity benefits without compromising data integrity.
Funding Details and Strategic Partnerships
The recent funding round was co-led by Index Ventures and Evantic Capital, valuing Nexos.ai at approximately €300 million ($350 million). This rapid infusion of capital follows an earlier $8 million funding round led by Index Ventures, highlighting the accelerated growth and investor interest in Nexos.ai. Notably, Evantic Capital, founded by former Sequoia Capital partner Matt Miller, played a pivotal role in this round. Despite Nexos.ai not actively seeking additional funding, Miller’s persistence and the strategic value offered by Evantic’s ‘Legends’ network—a consortium of 140 seasoned operators providing advisory support—were instrumental in finalizing the deal. This network offers invaluable insights and guidance, further strengthening Nexos.ai’s position in the market.
Product Offerings and Technological Innovations
Nexos.ai’s platform comprises two primary components: the AI Workspace interface for employees and the AI Gateway for developers. The AI Gateway serves as a control layer, addressing critical aspects such as security, cost management, and compliance oversight. By providing a unified access point to approximately 200 AI models, the Gateway effectively reduces fragmentation—a significant barrier to AI adoption identified by Okmanas. The recent funding will be utilized to enhance support for private models, catering to organizations handling sensitive data and requiring stringent security measures.
Market Strategy and Customer Engagement
Currently, Nexos.ai is conducting between 50 to 60 demonstration calls weekly, indicating robust interest from potential clients. However, Okmanas acknowledges that traditional enterprises may require substantial internal deliberation to secure board approval for AI adoption strategies. To facilitate this transition, Nexos.ai is initially focusing on tech-savvy companies already integrating AI into their daily operations, as well as organizations in regulated industries with heightened concerns about data governance and compliance. Early adopters include companies within the Tesonet portfolio and Bulgarian fintech unicorn Payhawk, which maintains an office in Vilnius. The funding will also support Nexos.ai’s expansion across Europe and North America, broadening its reach and impact.
Addressing the AI Governance Gap
The inception of Nexos.ai was influenced by the founders’ observations of an AI governance gap while managing Tesonet’s portfolio. They recognized that while AI offers transformative potential, its adoption is often hindered by security and compliance concerns. By providing a secure intermediary platform, Nexos.ai aims to alleviate these concerns, enabling enterprises to harness AI’s capabilities confidently. This approach not only addresses immediate security risks but also positions Nexos.ai as a key player in shaping the future of enterprise AI adoption.
Demonstrated Impact and Future Prospects
The effectiveness of AI integration is exemplified within Tesonet’s portfolio. For instance, Hostinger, a web hosting provider, implemented an AI assistant that significantly reduced the need for human support. Okmanas highlights the tangible benefits, noting, That’s why we didn’t need to hire 500 people and saved €10 million this year alone. Such success stories underscore the potential for AI to drive efficiency and cost savings when implemented securely and strategically.
While specific revenue figures for Nexos.ai remain undisclosed, the company’s growth trajectory is evident. By its first anniversary, the team is projected to expand to 100 employees, primarily based in Europe. This growth reflects the increasing demand for secure AI solutions and Nexos.ai’s commitment to meeting this need. Additionally, data sovereignty concerns in Europe have opened avenues for Nexos.ai to collaborate with public institutions, potentially expanding its market beyond the enterprise sector.
Conclusion
Nexos.ai’s recent funding milestone marks a significant step in addressing the complex interplay between AI adoption and data security within enterprises. By serving as a neutral intermediary, Nexos.ai empowers organizations to embrace AI’s transformative potential without compromising sensitive information. As the company continues to innovate and expand, it stands poised to play a pivotal role in shaping the future of secure enterprise AI integration.
