Hypernative Secures $40M Series B to Strengthen Web3 Security Infrastructure

As the world of Web3 continues to evolve, security has become one of its most pressing challenges. The rise of decentralized finance and digital assets has introduced immense opportunities, but also a complex web of risks. With the increasing sophistication of cyberattacks, ensuring the safety of these new financial ecosystems is more critical than ever. In this context, the Tel Aviv-based startup Hypernative has secured \$40 million in Series B funding to enhance the security infrastructure for Web3. Their mission? To build a proactive defense system that detects and mitigates threats in real-time, tackling the root cause of crypto’s trust issues.

Web3’s Security Problem: A Growing Concern

The world of Web3 operates in a decentralized environment where code governs billions in financial assets, yet is also vulnerable to malicious activities. On Tuesday, Hypernative announced a major milestone in securing \$40 million in Series B funding. The startup’s objective is to become the first line of defense against these threats, detecting them as they emerge, and preventing damage before it can occur.

Co-led by renowned cybersecurity investors like Ten Eleven Ventures and Ballistic Ventures, the funding round highlights the growing importance of cybersecurity in decentralized finance. With traditional institutions increasingly adopting blockchain technology, the security risks inherent in decentralized systems are becoming more evident. As cryptocurrencies like stablecoins and tokenized assets continue to gain momentum, trust remains the biggest challenge in mass adoption.

Gal Sagie, CEO and co-founder of Hypernative, emphasized that Web3 is now at an inflection point. While clear regulations and institutional adoption are on the rise, security concerns remain the major hurdle to widespread Web3 adoption.

Hypernative’s platform is already being used by over 200 Web3 organizations to protect more than \$100 billion in assets. In 2024 alone, the company detected \$2.2 billion in crypto losses from hacks, phishing, and fraud—an alarming 22% increase from the previous year. Notable incidents, such as the February Bybit hack, which resulted in a \$1.4 billion loss, underscore the importance of robust security solutions.

With projections indicating even more breaches in the near future, Hypernative’s proactive approach, which blends AI-powered detection, threat simulations, and cross-platform integrations, is designed to provide developers with critical warning time before malicious actions take place.

The Series B funding will enable Hypernative to expand into fraud prevention and wallet-level transaction protection. The company aims to build an all-encompassing security layer for blockchain, which many consider to be a missing component in the Web3 ecosystem. Hypernative also plans to enhance its AI models and team to improve support and analysis, ensuring they stay ahead of evolving threats.

What Undercode Says: The Need for Real-Time Security in Web3

As Web3 rapidly grows, it’s clear that traditional security methods are no longer enough. Hypernative’s strategy of using AI-driven tools to proactively identify and neutralize threats is a necessary evolution in cybersecurity. Web3’s decentralized nature, while promising, presents unique challenges when it comes to securing digital assets and financial transactions. The lack of a central authority means that every piece of code—every wallet, exchange, and smart contract—requires its own defense system.

Hypernative’s technology is addressing this gap, offering tools that provide real-time monitoring of transactions and identify vulnerabilities within decentralized applications (dApps). Their recent addition of the Guardian tool, which simulates every transaction to guard against the blind signing vulnerability, further exemplifies their proactive approach. This type of defense mechanism is essential for preventing large-scale hacks and fraud that often happen when users inadvertently authorize malicious transactions.

As the market continues to mature, the need for such sophisticated security platforms will only increase. With billions at stake, Web3 platforms cannot afford to ignore the vulnerabilities in their infrastructure. Hypernative is positioning itself as a crucial player in this space, offering not just reactive measures, but real-time preventative solutions that could become the gold standard in blockchain security.

Fact Checker Results ✅❌

Claim: Hypernative has secured \$40 million in Series B funding to enhance Web3 security.

✅ True: The company successfully raised \$40 million, a move that solidifies its role in improving Web3 security.
2. Claim: Hypernative’s platform detected \$2.2 billion in losses from hacks and fraud in 2024.

✅ True: This figure highlights the increasing threats in the crypto space, validating the need for Hypernative’s services.
3. Claim: Hypernative’s Guardian tool simulates transactions to prevent “blind signing.”

✅ True: Guardian is designed to prevent users from unknowingly authorizing malicious actions, protecting Web3 platforms from common vulnerabilities.

Prediction: The Future of Web3 Security 🔮

With the exponential growth of Web3 and decentralized finance, we can expect a surge in both institutional and individual investments in security solutions. As more traditional financial systems embrace blockchain technology, the need for robust and real-time security measures will intensify. Companies like Hypernative that are leading the charge in Web3-specific cybersecurity will likely see their platforms evolve into industry standards.

Looking ahead, we predict that Web3 security will move towards fully automated, AI-driven defenses, providing near-instantaneous protection against evolving threats. Additionally, as more regulatory frameworks are put in place, companies with comprehensive security platforms will be better positioned to comply with evolving compliance standards, further driving their adoption. Hypernative’s expansion into fraud prevention and wallet-level protection signals the industry’s need for multi-layered security solutions, making Web3 a more secure space for both users and developers.