Italian startup Exein has joined the unicorn club after raising a $270 million funding round led by Headline. The company is now valued at $1.7 billion and aims to provide cybersecurity for physical AI devices, an evolution of its initial focus on IoT.
Exein’s CEO, Gianni Cuozzo, explained the company’s vision: “The concept of Exein is that every device should be able to defend itself, regardless if they are connected to a secure network or not,” he told TechCrunch. The Rome-based firm has developed Photon, a runtime security solution to prevent attacks at the kernel level of a device. This approach is key as devices increasingly operate in environments where network security cannot be guaranteed.
Securing the Physical AI Wave
Exein has been working closely with manufacturers since its founding in 2018. This strategy has paid off, with the company securing over 2 billion connected devices in critical sectors like aerospace, healthcare, and energy. According to Cuozzo, the choice to work directly with OEMs and silicon vendors was driven by the conviction that connected devices were on the rise, creating significant tailwinds for Exein.
The startup sees physical AI as a key growth driver. Cuozzo noted that Exein’s technology can cover AI-powered robots, drones, self-driving cars, sensors, smart appliances, and other connected devices running models on the edge. This focus aligns with the growing demand for secure, autonomous systems in industries such as industrial automation, automotive manufacturing, and semiconductors.
Exein’s latest funding round was oversubscribed, reflecting investor confidence. The company’s valuation has surged thirty-fold since its Series B round two years ago, and more than doubled since its equity and debt raise in December 2025.
Battling Machine-Speed Attacks
As AI advances, so do cyber threats. Cuozzo warned that open-source models are facilitating attacks by running without guardrails, making it easier and cheaper to target physical devices in novel ways. Exein has observed an increase in “machine-speed attacks” and is developing a foundational model for physical AI security, set to launch in Q1 2027. The company is currently training the model on machine data and telemetrics to predict and mitigate threats before they cause harm.
The company plans to use its new funding for acquisitions and hiring, targeting expansion in the U.S. and Asia Pacific regions, which currently drive half its revenue. Cuozzo said being spread across three continents has been Exein’s main challenge so far, but it has borne fruit, with the company “growing 400% year on year.”
The European Union’s Cyber Resilience Act, which mandates manufacturers to ensure digital products are safe from cyber threats, could further boost Exein’s position when it takes full effect in December 2027.
