Terra Security: Reimagining Offensive Security for an Agentic World

Today DTC welcomes Terra Security to the portfolio. We invested in the team’s Series A alongside round lead Felicis and a strong syndicate of earlier investors including SYN Ventures, FXP and others to support the Terra team in redefining the future of offensive security.

For decades, penetration testing (pen testing) has been sold into the enterprise as a largely mostly-manual professional service. This solution model, while essential, is slow, expensive, and difficult to scale, leaving organizations exposed and moving much slower than the speed of innovation. But we believe this corner of the cyber market is at an inflection point with maturing  Agentic AI delivering significant efficiency gains and a market that’s ready for it. Gartner projects the pen testing market will reach $4.5 billion by the end of 2025, and Dimension Market Research expects a 16.6% compound annual growth rate in the U.S. market alone. 

This is precisely what drew us to Terra Security. The company is at the forefront of this disruption, building a first-to-market agentic-AI-powered continuous penetration testing platform. Terra's approach is bifurcated: it swarms of specialized AI agents that are environmentally aware with human-in-the-loop oversight. This delivers the speed and scale of automation with the precision and creative/critical thinking of human testers.

Their platform replaces slow, point-in-time assessments with continuous, exploit-driven insights, allowing security teams to focus on fixing the risks that truly matter.

Our conviction in Terra is rooted in several key factors:

• A Visionary Team: Co-founders Shahar Peled and Gal Malachi bring an exceptional blend of deep expertise in both AI and offensive security. They have the vision and technical skill to execute on this massive opportunity.
• Significant Early Market Traction: In a very short time, Terra has already gained the attention of Fortune 500 customers and secured a strategic partnership with AWS, winning the 2025 CrowdStrike and AWS Cybersecurity Accelerator.
• A Pragmatic Approach: While pioneering a new category, the team understands the importance of trust and reliability. Their commitment to keeping a human-in-the-loop is crucial for maturing this technology in a way customers can trust and doesn’t waste developer’s time.

Just as agentic AI is transforming other professional services, it’ll fundamentally reshape the enterprise's approach to pen testing. We think Terra Security is the team to get this done. 

Congratulations to the entire Terra Security team on this milestone! Now, on to category-defining company building ↗️

Barrel and Team DTC