Defakto Secures $30.75M to Redefine the Future of Non-Human Identity Security

Read full announcement here: https://www.defakto.security/blog/defakto-secures-30-75-m-series-b-to-set-a-new-standard-in-non-human-identity-security/?utm_source=nhimg

PALO ALTO, CA – October 21, 2025 — Defakto, the Non-Human Identity (NHI) security company formerly known as SPIRL, has announced a $30.75 million Series B funding round led by XYZ Venture Capital, with continued support from The General Partnership, Bloomberg Beta, and WndrCo. The company also unveiled its complete Non-Human Identity and Access Management (IAM) platform, purpose-built to secure every automated interaction across workloads, pipelines, and AI-driven environments.

Securing the Invisible Majority

In today’s digital enterprises, non-human identities outnumber human users by an average of 45:1. Yet most systems still depend on static secrets, API keys, and service accounts — a relic of traditional security models. This legacy approach fuels “vault sprawl,” excessive privilege accumulation, and unmanaged service accounts that create massive attack surfaces across cloud, DevOps, and AI ecosystems.

Defakto addresses this problem by eliminating static credentials entirely. Its platform replaces passwords, keys, and tokens with dynamic, verifiable machine identities, allowing enterprises to automate securely and scale without exposing sensitive access credentials.

Executive Vision

“Every enterprise has invested in securing its people. But non-humans are now the majority of users, and their identities are still governed by outdated, secret-based models that create mounting technical debt,” said Danny Oliveri, Cofounder and CEO of Defakto.
“We built Defakto to eradicate secrets, eliminate overprivileged access, and give enterprises the same foundation for machines and AI that IAM gave them for people.”

Investors see Defakto’s platform as a defining innovation in modern cybersecurity, transforming how organizations manage machine and AI identities at scale.

“They’re not managing secrets better; they’re eliminating the need for them entirely,” said Ross Fubini, Managing Partner at XYZ Venture Capital. “That’s the kind of rethinking that defines a category.”

What Sets Defakto Apart

Defakto’s platform introduces a holistic framework for Non-Human Identity Lifecycle Management, offering the capabilities needed to secure a hyper-automated enterprise:

• Complete Non-Human IAM – Built for full lifecycle management of machine and AI identities.
• Standards-Based Design – Grounded in protocols like SPIFFE and WIMSE for interoperability and long-term resilience.
• Secrets Elimination – Removes static credentials, vault clutter, and hidden access points.
• Developer-Centric Security – Integrates directly into CI/CD pipelines and cloud workflows without friction.
• AI-Ready Infrastructure – Assigns verifiable identities to AI agents, ensuring safe, governed operation.
• Multi-Cloud Identity Unification – Provides a single framework across AWS, Azure, GCP, and hybrid ecosystems.

A New Foundation for Machine and AI Security

Defakto was founded by Eli Nesterov and Danny Oliveri, both veterans in enterprise security and distributed identity. Nesterov, who previously led one of the world’s largest SPIFFE deployments, witnessed firsthand how static secrets fail to scale in modern infrastructures. Together, they envision a future where identity replaces secrets as the trust fabric of automation and AI.

“Enterprises can’t enter the age of AI on a foundation of static secrets,” said Eli Nesterov, CTO of Defakto. “Defakto replaces that legacy model with dynamic identity, transforming security from a liability into an enabler.”

Market Momentum and Future Outlook

Defakto already secures Global 2000 enterprises, helping them unify identity governance across complex, multi-cloud and AI-integrated systems.

The Series B funding will accelerate:

• Product innovation and advanced AI identity features
• Expansion of go-to-market operations
• Global enterprise adoption
• Strengthening of Defakto’s position as the de facto standard for Non-Human Identity Security

Industry leaders, including Michael Coates (former CISO of Twitter) and J.P. Morgan, also participated in the round — validating Defakto’s position at the forefront of next-generation identity security.