Oak Emerges from Stealth with $60M in Funding to Tackle the Identity Crisis Fueled by AI Agents
In the past, physical badges were sufficient for managing identity within companies. However, as humans increasingly collaborate with machines and AI in digital settings, traditional identity solutions have begun to fall short.
This is where the Israeli startup Oak aims to make an impact, having recently emerged from stealth mode. Co-founded by seasoned entrepreneur Shai Morag, Oak has been developing a comprehensive control system designed to manage organizational identity. The product is now publicly available and has already been implemented by several enterprise clients, thanks to $60 million in seed funding secured late last year.
While the company has not disclosed the names of its clients, it confirmed that its solution is actively in use across a range of enterprise sectors.
Challenges such as outdated credentials and ineffective identity access management (IAM) represent significant security risks, vulnerabilities that AI could potentially exacerbate for malicious actors. Oak identifies itself as AI-native, aiming to replace outdated systems that have struggled to meet contemporary demands without a comprehensive alternative.
Tal Marom, another co-founder and chief product officer, noted that the company spent a considerable amount of time consulting with 100 chief information security officers (CISOs) and IAM professionals before finalizing its product. Their solution features an AI connector framework that aligns access permissions with actual application usage, automatically revoking unnecessary permissions in real time instead of merely during routine audits.
Morag, previously a military officer with over two decades in cybersecurity, explained, “Currently, the process is overly manual and more operations-focused than risk-focused — for instance, there’s no alert when an employee logs in from a suspicious location.” His experience includes selling his cybersecurity startup, Secdo, to Palo Alto Networks in 2018.
This impressive background allowed Oak to secure substantial funding, aligning with its ambitions for significant investment in research, development, and growth. Morag articulated, “Our goal is to emerge as a major player from the outset.”
Morag has prior experience in a large corporation after Tenable acquired his cloud-based identity and security company, Ermetic, for $265 million in 2023. Following the passing of CEO Amit Yoran, Morag decided it was time to retire but ultimately opted to co-found Oak alongside Marom, a colleague he had met during his time at Tenable. Together, they assembled a team of 50 and are actively seeking new talent, particularly in the U.S.
The $60 million funding round was jointly led by Accel, CRV, and Greylock Partners, with contributions from AlphaDrive Ventures, Hetz Ventures, and several angel investors. Morag commented on the strong initial interest from venture capitalists.
Andrei Brasoveanu, a partner at Accel, pointed to Morag’s prior achievements as compelling evidence for their investment. Accel had previously led Ermetic’s Series A funding when it was still pre-revenue. Upon the acquisition, they extended an informal offer to Morag to support his next venture. Brasoveanu expressed confidence in Morag’s potential to create a larger and more impactful company this time around.
While AI is seen as “a democratizing force,” Brasoveanu acknowledged that experience is still essential in identity management. “There’s a significant level of complexity in the product and in the organizations you must navigate to successfully market it,” he explained.
Both Morag and Brasoveanu anticipate fierce competition, with many companies looking to leverage AI for transformative change in an industry rife with vendor lock-in. This urgency puts pressure on Oak to grow quickly. Morag, who has told his wife that this is his final entrepreneurial endeavor, states, “I either go big or go home.”
The individuals pictured above are Shai Morag and Tal Marom.
