# Italian cybersecurity firm Exein becomes unicorn with $270M funding Exein's physical AI security solution attracts oversubscribed investment amid rising threats - **Source:** [cybersecurity | TechCrunch](https://brifing.si/source/73fbb25c-5e90-44c9-9a24-7906dc3436cd) - **Published:** 2026-09-15 - **Original article:** - **On Brifing:** https://brifing.si/s/84123700-97e0-40ac-9948-e8b33280280b ## Europe's newest unicorn Italian cybersecurity startup Exein achieved a $1.7 billion valuation after raising $270 million in funding led by Headline. The Rome-based company specializes in protecting physical AI devices, evolving from its IoT security roots. Exein's valuation has grown thirty-fold since its Series B two years ago, reflecting strong investor confidence in its approach to securing connected devices at the kernel level through its Photon runtime security solution. ## Physical AI security focus Exein's technology targets the emerging threat landscape of physical AI devices like robots, drones, and smart appliances. CEO Gianni Cuozzo emphasizes that every device should defend itself, regardless of network connectivity. The company works directly with OEMs and silicon vendors, having secured over 2 billion devices across aerospace, automotive, healthcare, and industrial sectors since its 2018 founding. ## Machine-speed attack surge Exein reports increasing 'machine-speed attacks' enabled by open-source AI models that bypass traditional guardrails. These attacks target physical devices in novel, cost-effective ways. In response, Exein is developing a foundational security model for physical AI, currently training on machine data and telemetrics with planned Q1 2027 release. ## Global expansion strategy The new funding will accelerate Exein's U.S. and Asia Pacific expansion, regions currently generating half its revenue. The company plans acquisitions to complete its product portfolio and significant hiring. Despite challenges managing operations across three continents, Exein claims 400% year-on-year growth, though maintaining this pace remains uncertain. ## Regulatory tailwinds The EU's Cyber Resilience Act, with reporting requirements beginning September 2026 and full implementation by December 2027, mandates manufacturers ensure digital product safety. This regulation creates favorable conditions for Exein's solutions as manufacturers seek compliant security measures for connected devices and physical AI systems. ## Investment momentum Exein's latest round was significantly oversubscribed, reflecting strong market demand for physical AI security solutions. The company more than doubled its valuation since December 2025's equity and debt round following its Series C. Investor enthusiasm aligns with the growing physical AI market using the same supply chains Exein already serves. ## Technical approach Exein's Photon solution operates at the kernel level to prevent attacks before they compromise devices. This deep system integration requires close manufacturer partnerships. The approach differs from network-based security by embedding protection directly into devices, crucial for physical AI systems where network connectivity may be intermittent or unavailable. ## Market positioning Exein bridges cybersecurity and physical AI markets, positioning itself as infrastructure for the coming wave of autonomous devices. Its existing relationships with manufacturers across critical industries provide a competitive edge. As physical AI adoption grows, Exein's early specialization in device-level security could establish it as a standard for the emerging category. ## Sources covering this story - https://techcrunch.com/2026/09/15/new-italian-unicorn-exein-rides-the-physical-ai-wave/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._