WhiteMatter raises USD $20 million to govern AI agents

WhiteMatter has raised USD $20 million in a Series A funding round led by Blumberg Capital. It says it now manages 2.25 million AI agents across customer environments.

The San Francisco- and Austin-based group, formerly known as QuilrAI, sells software designed to govern how AI agents are built, deployed and monitored inside large organisations. Existing investors Crew Capital and Sprout & Oak also took part in the round.

The financing comes as companies adopt autonomous AI systems more widely across security, operations and customer-facing work. WhiteMatter argues that many existing security tools were built for human users and conventional software, not software agents that can act independently across multiple systems.

It says it has tripled its customer base this year, increased revenue fivefold over the past six months and recorded zero customer churn. It also reported about 200% net revenue retention.

Named customers include Sentara Health, Alter Domus, New American Funding and Concentrix, alongside other Fortune 500 companies. Over the past nine months, WhiteMatter says its software has governed 116 billion AI interactions and saved customers more than 11 trillion tokens.

Guardrails for AI

WhiteMatter's system is designed to work across endpoint and browser environments, software-as-a-service applications, cloud systems and code environments. It is intended to govern agents, models and MCP servers before they enter production and to check actions as they are carried out.

The company says it can assign a dedicated "Guardian" agent to each AI agent used by a customer to enforce policy on every action. It expects the number of managed agents to exceed 5.5 million by the end of the year.

Vidit Arora, Founder and Chief Executive Officer of WhiteMatter, set up the business after working in enterprise security and helping build products at Securonix. He said companies are not slowing their AI roll-outs despite repeated concerns about governance and oversight.

"Despite all the discussion about pausing AI development, enterprises are doing the opposite," said Arora, Founder and Chief Executive Officer of WhiteMatter. "AI technology is too powerful, the opportunity is too significant, and the competitive pressure is too real to put it back in the box. Companies that slow down AI adoption risk being overtaken by competitors that move fast, stay secure, and scale AI with confidence, which is exactly why we built WhiteMatter."

Customer uptake

Healthcare group Sentara Health is among the companies using the software as it expands internal AI use across a workforce of 35,000 people. The organisation said it had chosen to operationalise AI rather than limit its efforts to pilot projects.

"At Sentara Health, our mission is to improve health every day, and technology is increasingly important to how we deliver on that mission. As an integrated health system with both care delivery and health plan services, we made the decision early to operationalize AI rather than simply pilot it. Today, across our 35,000-person workforce, AI is increasingly becoming part of how we work, deliver care and serve our patients, members, and communities," said Zishan Siddiqui, Chief Information Security Officer of Sentara Health. "WhiteMatter is helping us scale that adoption responsibly by providing greater visibility into how AI is being used, protecting sensitive information at the point of use, and guiding our workforce toward appropriate behaviors and tools in real time. We're not governing AI to slow innovation. We're creating the trust and guardrails that allow us to innovate responsibly, keep saying yes, and ultimately advance our mission of improving health every day."

Another customer, Alter Domus, said it uses what it describes as industrialised AI agents in production settings and has cut the time needed for some work from a quarter to a week.

"At Alter Domus, we scale practical AI with measured returns: squads of Industrialized Agents in production, and work that used to take a quarter now takes a week," said Demetry Zilberg, Chief Technology Officer of Alter Domus. "That pace is only responsible if governance keeps up. With WhiteMatter in our cyber defense stack, every agent is governed before it goes live, every tool call is policy-checked at one gateway, and the telemetry shows us where AI actually creates value. Security, adoption, and enterprise value aren't separate conversations here. They're one lifecycle, and we can see all of it."

Investor view

Investors are increasingly betting that AI governance will become a distinct software market as companies move from testing tools to deploying autonomous systems at scale. WhiteMatter's approach focuses on managing AI behaviour before deployment as well as during live operation.

Pramod Gosavi of Blumberg Capital said the firm sees agent-based software as the next major shift in enterprise computing.

"Every wave of enterprise computing eventually produced its own security layer, from the network to the cloud to identity," said Gosavi. "Agents are the next wave and could soon outnumber employees inside enterprises, requiring a governance layer built natively for them. We backed WhiteMatter because its platform approach and Guardian agent model give enterprises the guardrails an autonomous workforce needs, at a scale no human security team could manage manually."