A new AI unicorn has emerged in Europe. Exein, a cybersecurity startup headquartered in Rome, has completed a $270 million financing round, raising its valuation to $1.7 billion. The company focuses on physical AI security, providing protection for robots, drones, and various edge devices.

Valuation rises to $1.7 billion

This round of financing was led by Headline. Exein initially focused on IoT security and has in recent years shifted to focusing on device self-protection, with the aim of enabling terminals to have self-defense capabilities even when they are not within a secure network.

The company's latest product, Photon, is a runtime security solution primarily designed to prevent attacks at the device kernel level. Exein takes a different approach by collaborating directly with device manufacturers and chip suppliers to embed security capabilities into the hardware and system chain.

Overlapping robots and edge devices

According to Exein, their solution has covered over 2 billion connected devices, involving industries such as aerospace, industrial automation, automotive manufacturing, energy, healthcare, and semiconductors. Once these scenarios are attacked, it often affects production or the operation of critical services.

The company believes that the rise of physical AI will continue to drive demand growth, as related products share similar supply chains with existing networked devices. According to Exein, their products can cover a range of devices that operate at the edge, including AI robots, drones, autonomous vehicles, and smart sensors.

Plan to advance mergers and acquisitions and overseas expansion

Exein also mentioned that AI is also enhancing the capabilities of attackers. The company's CEO, Gianni Cuozzo, stated that some open-source models, in the absence of restrictions, are making attacks on physical devices cheaper, faster, and easier to replicate.

According to Exein, more attack behaviors related to "machine speed" have been observed. The company is currently training a basic model for physical AI security based on machine data and telemetry information, with plans to launch it in the first quarter of 2027.

The new financing will mainly be used for mergers and acquisitions to complete the product line, as well as to hire more employees and accelerate expansion in the US and Asia-Pacific markets. Exein indicates that the Asia-Pacific region currently contributes half of the company's revenue, with the company's overall revenue increasing by 400% year-on-year.

New EU regulations may create demand

The company may also benefit from the EU's Cyber Resilience Act. The reporting obligations under this act were initiated last week and will come into full effect in December 2027. According to the requirements of the act, manufacturers need to ensure that digital products have the security capabilities to cope with cyber threats.