Jazz raises $61M to fix data loss prevention with AI
What's the deal? Jazz, a New York-based cybersecurity startup, has emerged from stealth with $61 million in seed and Series A funding. The company aims to overhaul data loss prevention (DLP) using AI.
Glilot Capital PartnersDealroom has a profile for this one. Try Dealroom → and Team8 led the round. Ten Eleven VenturesDealroom has a profile for this one. Try Dealroom →, Merlin VenturesDealroom has a profile for this one. Try Dealroom →, Encoded VenturesDealroom has a profile for this one. Try Dealroom →, and MassMutual VenturesDealroom has a profile for this one. Try Dealroom → also participated.
Jazz replaces traditional rule-based DLP systems with what it calls an "Agentic Investigator" — an AI that learns how a company actually works. Instead of flagging every potential violation, it analyses context and intent to distinguish real threats from false alarms.
At one 5,000-employee customer, Jazz reduced daily alerts from tens of thousands to about ten pre-investigated incidents.
Why now? Traditional DLP has frustrated security teams for over two decades. Rule-based systems generate massive alert volumes that overwhelm teams or get ignored entirely.
The human element remains the weak link — Verizon's 2025 Data Breach Investigations Report found roughly 60% of breaches involve human error, manipulation, or insider misuse. GenAI tools have added urgency, as employees pasting sensitive data into ChatGPT create risks legacy systems struggle to catch.
What could go wrong? DLP is a notoriously difficult category. Many startups have tried and failed to crack it.
Jazz must prove its AI can scale across diverse enterprise environments without creating new blind spots. It also faces competition from established players adding AI to their own products.
The signal: This funding reflects investor appetite for AI-native security tools that replace legacy systems rather than augment them.
Jazz already has paying customers including Lemonade, AlphaSense, and CAVA — notable traction for a company just exiting stealth. The founders — veterans of Israel's Unit 81 and alumni of Axonius and Laminar — bring deep enterprise security experience.
"Jazz didn't just incrementally improve DLP; they fundamentally solved the friction that has plagued this category for two decades," said Liran Grinberg, co-founder and managing partner at Team8.
Source: Jazz Press Release
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