AI security startup Dam Secure has raised A$6.1 million(US$4m) in seed funding to address the security risks caused by AI-generated code being used in production at a large scale.
The funding round was led by Paladin Capital Group, a Washington DC-based investor focused on cybersecurity and AI.
Other supporters include Secure Code Warrior CEO Pieter Danhieux, RecordPoint CEO Anthony Woodward, Innovation Bay founder Phaedon Stough, and Tyro Payments chief product officer Steen Andersson.
As part of the deal, Paladin Capital’s managing director Mourad Yesayan will join Dam Secure’s board.
The funding comes at a time when companies are quickly using AI coding assistants. While these tools speed up software development, they also create new security risks that current tools often fail to detect.
Dam Secure was founded by former Zip Co and Secure Code Warrior executives, Patrick Collins and Simon Harloff. The company is building an AI-native security platform that finds “logic gaps” in code—places where the code works but does not meet basic security standards, which traditional scanners often miss.
Collins, who is also the company’s CEO, said “rushing to adopt AI to increase developer velocity”, but existing application security tools are struggling to keep pace.
“Existing security tools generate too much noise to work effectively in this new environment,” he said.
Dam Secure says that even when AI-generated code works correctly, it often breaks internal security rules or best practices because general AI models don’t understand a company’s specific security needs.
Instead of using pattern-based scanners that look only for known vulnerabilities, Dam Secure lets companies write their security rules in plain English and automatically applies them across all code during development.
The company works alongside existing security tools, focusing on logic-level flaws rather than known vulnerability signatures.
For example, Collins mentioned a flaw in Volkswagen’s connected car APIs in May 2025. There was no rate limit on a four-digit access code, which allowed attackers to guess codes and access vehicle location data—a problem Dam Secure’s approach could help prevent.
“Dam Secure would have simply prevented this by automatically enforcing the logical rule: ‘All authentication endpoints must implement rate limiting,” Collins said.
“When you define a security rule in plain English, like ‘customer data must be encrypted at rest’, our agents can query this Security Knowledge Graph to find where this needs to be applied quickly, to understand the context and determine if there is a security flaw,” Collins said.
Dam Secure is currently being used by six major tech companies on a private, invite-only basis. It works alongside their existing security tools instead of replacing them.
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