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Knostic announced an additional $11 million investment on March 5, 2025, to support enterprise adoption of AI tools including Microsoft 365 Copilot and Glean. The company said the round brought its total funding to $14.3 million; a same-day PR Newswire release rounded the total to $14 million. The funding announcement does not establish that Knostic eliminates data leaks: that wording appeared in the release headline, while the reviewed materials describe a proposed set of controls rather than independently measured results.

What Knostic announced

Knostic’s March 5, 2025 announcement said the company raised an additional $11 million. It attributed the funding to Bright Pixel Capital, Silicon Valley CISO Investments (SVCI), DNX Ventures, Seedcamp, and angel investors. Knostic reported total funding of $14.3 million after the round, while the same-day PR Newswire release, provided by the company, rounded that figure to $14 million.

Knostic said it would use the investment to support enterprise adoption of AI tools such as Microsoft 365 Copilot and Glean. Its funding post says the company was founded in 2023 by Gadi Evron and Sounil Yu, whom it describes respectively as a cybersecurity entrepreneur and a former Chief Security Scientist at Bank of America. These company-reported details appear in Knostic’s funding announcement.

Why Knostic says AI search changes the risk

Knostic’s argument is that conventional file permissions and sensitivity labels may not answer every question raised by AI search. An employee might be allowed to see several ordinary documents but not be entitled to infer a sensitive conclusion from the combination. The company gave the example of inferring the scope of a secret project from personnel assignments and equipment purchases.

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Knostic said its first nine customers helped it understand how users could infer sensitive information without direct access to the underlying source material. That is an anecdote reported by the company, not a measured prevalence estimate or evidence that the same pattern is widespread across enterprises. Knostic co-founder and CEO Gadi Evron said in the announcement, “The rapid adoption of LLM tools creates a major security problem, LLMs can’t keep a secret.” This is the company’s framing of the risk, not an independently established finding.

How Knostic describes its controls

Knostic presents its core approach as a “need-to-know” layer that complements existing permissions and labels. Its current What We Do page describes four parts of that approach:

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  1. Find exposed content: identify enterprise information that may be discoverable in AI-assisted workflows.
  2. Define need-to-know policies: map knowledge to roles and business context, then create and manage policies.
  3. Remediate exposure: address identified issues through permissions and labels.
  4. Monitor for drift: look for policy violations or changes that could make previously controlled information exposed.

Knostic’s current security-team page says the service simulates role-specific prompts to look for potential sensitive-data exposure before answers are returned, and positions the product for Microsoft 365 environments. Its knowledge-controls page describes classifying enterprise knowledge, evaluating need-to-know against permissions, Microsoft Purview labels and custom rules, then flagging exposure and adjusting access controls. These are vendor descriptions of intended capabilities, not independent validation of effectiveness or a definitive statement of compatibility for any particular customer deployment.

What the funding announcement does—and does not—prove

The $11 million figure is the additional investment Knostic announced in 2025. The announcement and product pages do not provide independent evidence that Knostic reduced leaks, a quantified rate of enterprise AI data leakage, or measured performance against competing products. The “eliminate” wording in the PR Newswire headline should therefore be read as promotional language, not a demonstrated outcome.

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The investor and executive quotations in the release also express opinions rather than product test results. For example, Sounil Yu said need-to-know policies can reshape LLM answers to fit a user’s business context, while Xcel Energy CISO and SVCI investor Shaun Marion called access control one of the significant risks at the intersection of AI and security. Neither statement establishes how well a specific deployment performs.

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Questions enterprise buyers should verify

Knostic’s current materials emphasize Microsoft environments, while the 2025 funding release also named Glean. Exact integrations, supported data sources, deployment requirements and coverage can change, so buyers should confirm them for their own environment rather than infer full compatibility from a named platform.

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  • Control coverage: Does the product assess prompts, generated responses, retrieved knowledge, underlying permissions—or some combination?
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  • Operational impact: Ask about deployment prerequisites, response-time effects, monitoring, and how policy changes are tested and rolled back.
  • Evidence of outcomes: Request customer-specific, verifiable results and evaluation methods rather than treating product descriptions or funding coverage as proof of leak reduction.

Knostic’s current Data Security page also describes broader AI data-governance positioning and a “Prompt Gateway” that inspects prompts and responses for secrets, personally identifiable information and proprietary code. This is a current vendor claim, separate from the central need-to-know product story in the 2025 funding announcement.

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