Fundraising Fox

Nightfall

San Francisco, US Β· Founded 2018 Β· 121 employees on LinkedIn Β· 7 known investors

Nightfall is an AI-native data loss prevention (DLP) platform that monitors and controls how sensitive data such as credentials, PHI, PCI, and PII moves across SaaS apps, endpoints, email, browsers, and AI tools. It uses AI-based classifiers and data lineage tracking to detect and block data exfiltration and insider risks, including leaks to generative AI apps like ChatGPT, for security teams at organizations of scale.

Also known as Nightfall AI Β· Watchtower AI

Founders & leadership

Nightfall was founded in 2018 by Rohan Sathe.

RSRohan Sathe
Rohan SatheinFounder

Investors Β· 7

Also in the syndicate Β· 3

Drew BreesJosh ChildressPaul Rudd

Company profile

researched Aug 2026

Nightfall AI is a data loss prevention (DLP) and insider risk management platform that detects, classifies, and controls the movement of sensitive data across SaaS applications, endpoints, browsers, email, and generative AI tools. The platform detects categories such as PII, PHI, PCI, secrets and credentials, and uses LLM-based file classifiers to identify document types including financial statements, internal source code, HR records, contracts and NDAs, product roadmaps, and tax and audit documents. Remediation actions include blocking, redaction, quarantine, deletion, encryption, permission revocation, and prompting employees for business justification ("employee coaching").

Product areas described by the company include data exfiltration prevention (including shadow AI prevention and data lineage reconstruction), AI agent security (interception of AI agent tool calls, prompt-injection blocking, Model Context Protocol server discovery and policy enforcement), data detection and response, posture management, data encryption for email, historical data discovery and classification, and developer APIs for filtering sensitive data from GenAI apps and datasets. Documented integrations cover Slack, GitHub, Google Drive, Gmail, Confluence, Jira, Microsoft 365 (OneDrive, Teams, Exchange Online, SharePoint), Salesforce, Zendesk, Notion, and Anthropic Claude Enterprise via the Claude Compliance API, alongside endpoint agents for macOS and Windows and Chrome and Firefox browser extensions.

The company positions the platform against legacy DLP, which it characterizes as reliant on pattern matching with 5-25% accuracy and lengthy tuning cycles, versus Nightfall's stated 95% out-of-the-box classification accuracy from 100+ AI-based models, LLM file classifiers, and computer vision models.

Founding story

Co-founder and CEO Rohan Sathe led backend teams at Uber Eats, building applied ML services such as ETA prediction and supply/demand forecasting, where he worked with petabyte-scale data spread across many systems. He cites that experience plus industry lessons from incidents such as Uber's 2016 breach β€” in which exposed credentials in code on GitHub were used to reach AWS data β€” as showing how data sprawl, credentials, and cloud infrastructure combine to create outsized risk. Co-founder Isaac Madan was previously an investor at Venrock focused on SaaS, AI, and security. The pair founded the company in 2018 on the premise that machine learning could make DLP more accurate and easier to deploy than legacy tools.

Business model

Nightfall sells a B2B SaaS data security platform to enterprises, deployed through API-based SaaS integrations, endpoint agents, and browser plugins, complemented by a developer platform exposing detection as cloud-hosted APIs and SDKs. The sources do not disclose pricing or contract structure.

Not disclosed in the available sources beyond the enterprise software/platform model; the company markets a demo-led sales motion and an ROI estimator.

Traction

Named customers and references include Snyk, Unit21, Neural Payments, Telnyx, UserTesting, and Rightway. At the time of the 2022 Series B the company reported over 4,000% growth in data volume scanned since 2021 and more than 40 million sensitive data findings remediated for customers, and said it planned to more than double headcount over the following year. Current marketing cites 95% detection precision, 20x average ROI, and 80% automated remediation. Total disclosed funding is $60M across two rounds.

Latest developments

Recent announcements include Forensic Search and App Intelligence for insider risk visibility (February 2026), three new detectors for image-based PII and regional coverage (March 2026), and a live integration with Anthropic's Claude Compliance API (June 2026). Product messaging has shifted toward AI agent and MCP security, including MCP server discovery and inventory, hook-level interception of agent tool calls, prompt-injection blocking, and tool-call governance, supported by the State of Agentic Data Security 2026 report and the 2026 AI Agent Risk & Action Report.

β–ΈFull profile β€” market position, technology, go-to-market, geography, history, risks & controversies

Market position

Nightfall describes itself as an early entrant in cloud-native DLP and now positions itself as an AI-native DLP and insider risk platform for the AI era, contrasted with legacy DLP and CASB approaches. A third-party profile characterizes it as strong in SaaS-heavy, mid-sized and enterprise environments and names Proofpoint and Sophos as lagging competitors in SaaS-specific accuracy; that profile's claims are secondary and partly derived from vendor sources.

Stated differentiators include AI/ML-based classification claimed at 95% precision versus 5-25% for pattern-matching tools, LLM file classifiers and computer vision for document- and image-level sensitivity, data lineage tracking that follows content across transformations, deployment in hours via API integrations with no end-user impact, coverage of AI agents and MCP servers that the company says legacy DLP cannot parse, and continuous learning to cut alert fatigue.

Technology

The detection stack combines 100+ AI-based detectors, LLM-powered file classifiers that assess document structure, layout, and semantic meaning, computer vision models, and transformers. Nightfall adds AI-based data lineage that traces content from source to destination so risk can be assessed after transformation or renaming, and continuous learning from user annotations and actions to suppress low-risk workflows and reduce false positives. Enforcement points include pre-submission scanning in browser extensions and endpoint agents (macOS, Windows; Chrome, Firefox), API-based SaaS integrations, and hook-level interception of AI agent and MCP server activity. Custom detectors and regex libraries, detection rules and policy templates, historical scanning, RBAC, directory sync, and a detection playground are documented.

Go-to-market

Go-to-market is demo-led and content-heavy, with case studies, research reports (e.g., the State of Agentic Data Security 2026 report and the 2026 AI Agent Risk & Action Report), blogs, guides, webinars, and podcasts. The company also distributes through embedded partnerships (Snyk, Cribl, Virtru, Hanzo), a developer platform with APIs and SDKs, marketplace-style app integrations, and a customer referral program. A CRO (Gary Pfeiffer, previously Cyberhaven, AWS, Imperva) leads the go-to-market organization.

Security and compliance teams at organizations ranging from startups to Fortune 500 enterprises, in sectors including technology, healthcare, financial services, legal, insurance, education, and manufacturing, with compliance drivers around HIPAA, PCI, SOC 2, ISO 27001, and GDPR.

Geography

Headquartered in San Francisco, California, with an engineering presence in India led by a Head of India Engineering; the company describes customers across the globe.

History

Founded in 2018 in San Francisco by Isaac Madan and Rohan Sathe, the company reportedly operated originally as Watchtower AI before rebranding. It spent roughly a year in stealth and launched publicly on November 7, 2019 with $20.3M led by Bain Capital Ventures and Venrock, positioning itself as a cloud-native, ML-powered SaaS DLP product with a "control plane for cloud data" vision. It focused on SaaS scanning such as Slack and Google Drive around 2020-2021, raised a $40M Series B in August 2022 led by WestBridge Capital, announced generative AI coverage in 2023, and subsequently expanded into endpoint, browser, and AI agent/MCP security. Sources report $60M raised across two rounds.

Risks & controversies

No controversies are reported in the sources. Notable caveats: performance figures (95% precision, 20x ROI, 80% automated remediation) are company-stated and unverified; one third-party profile lists an employee count of 10,000+ and an investor roster (including Acrew Capital, Atlassian Ventures, Bain Capital Crypto, Okta Ventures, Tribe Capital, Accel) that is not corroborated by the company's own materials, so that source's details appear unreliable.

Compiled by commissioned research from 8 cited public sources β€” announcements, filings, and press listed under research sources below.

Key figures

latest reported
AI-based detection modelsJan 2026100+
Average ROI (company-stated)Jan 202620x
Detection precision (company-stated)Jan 202695%
Funding roundsJan 20262
Growth in data volume scanned since 2021Aug 2022over 4,000%
Incidents resolved through automation or employee self-remediation (company-statJan 202680%
Sensitive data findings remediated for customersAug 202240,000,000 findings
Total funding raisedJan 2026$60M

Company-reported or press-reported figures, each dated to when it was claimed β€” not independently audited.

Competitors Β· 7

by search overlap
Strac1107 shared keywordsStrac helps enterprises protect sensitive information during customer interactions by preventing data exposure incidents. The company builds security tools to enable secure handling of personally identifiable information without operational friction.
Netezza1080 shared keywordsIBM is a global technology company whose business spans enterprise software (including Red Hat, HashiCorp, and Confluent), IT infrastructure such as mainframes, servers, and storage, and IT consulting services. The company is also investing heavily in quantum computing and AI-based enterprise offerings, including its Lightwell open-source software security clearinghouse and the Anderon quantum wafer foundry.
AARP1063 shared keywordsAARP is a membership organization serving people aged 50 and older, offering benefits such as discounts, programs, newsletters, magazines, and community events. It also advocates on issues like Social Security and Medicare and provides resources on health, finances, and daily life.
Palo Alto Networks846 shared keywordsPalo Alto Networks provides cybersecurity platforms and services to protect organizations' digital infrastructure across cloud, network, and security operations. The company serves enterprise organizations, governments, financial institutions, utilities, and healthcare providers globally.
Experian809 shared keywordsExperian offers consumers tools to access their credit report and FICO Score, build credit, and manage money, including credit card matching, bill and subscription negotiation, car insurance comparison, and a digital checking account with debit card. It serves individual U.S. consumers through its app and financial products.
Accountable790 shared keywordsAccountable provides a platform that automates HIPAA compliance tasks including policies, training, risk assessments, vendor management, and incident tracking for small and mid-size healthcare organizations such as dental offices, therapy practices, and health tech startups.
Crowdstrike720 shared keywordsCrowdStrike provides an AI-native cybersecurity platform that unifies endpoint, identity, cloud, SaaS, and AI protection to detect and stop breaches for enterprise organizations. It combines automated response with human-led security operations including managed detection and response, threat hunting, and security services.

Companies competing with Nightfall for the same Google search keywords, organic and paid, via search-intersection analysis.

Timeline Β· 7

launches, deals, and filings
Jun 2026
Integration with Anthropic Claude Compliance API goes live

Nightfall announced its integration with Claude's Compliance API is live; documentation covers Nightfall for Claude Enterprise, including installation, policy configuration and policy incidents.

source β†—

Mar 2026
Three new detectors released

Nightfall released three new detectors to expand global DLP coverage, targeting image-based PII, regional coverage, and detection quality.

source β†—

Feb 2026
Forensic Search and App Intelligence for insider risk visibility

Nightfall introduced Forensic Search and App Intelligence features intended to provide context, timelines, and application-level intelligence for insider risk investigations.

source β†—

Jan 2023
Generative AI coverage announced

Nightfall announced generative AI guardrail coverage in 2023, later expanding to data exfiltration coverage across endpoints and browsers.

source β†—

Aug 2022
Nightfall AI raises $40M Series B

Nightfall AI closed a $40M Series B led by WestBridge Capital with participation from Next Play Capital and existing investors Bain Capital Ventures, Venrock and Pear VC, plus professional athletes and influencers including Paul Rudd, Drew Brees and Josh Childress. Sumir Chadha of WestBridge joined the board. Funds earmarked for hiring, integration/partner ecosystem expansion and new products.

$40M source β†—

Aug 2022
Partnerships to embed Nightfall detection in third-party products

Nightfall announced partnerships with Snyk, Cribl, Virtru, and Hanzo to embed its detection capabilities into their offerings.

source β†—

Nov 2019
Nightfall exits stealth with $20.3M Series A

After roughly a year in stealth, Nightfall launched publicly on November 7, 2019 with $20.3 million in funding led by Bain Capital Ventures and Venrock, positioned as a cloud-native, ML-powered SaaS DLP solution.

$20.3M source β†—

Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.

In the news

β–ΈResearch sources Β· 8

primary sources listed

8 public sources were cited for this profile; the first-party ones are listed here.

Frequently asked questions

What does Nightfall do?
Nightfall AI is an AI-native data loss prevention platform that detects and blocks sensitive data movement across SaaS, endpoints, and AI tools.
Who founded Nightfall?
Nightfall was founded by Rohan Sathe in 2018.
Who are Nightfall's investors?
Nightfall's investors include Next Legacy Partners, Venrock, Webb Investment Network, Bain Capital Ventures.
Where is Nightfall headquartered?
Nightfall is headquartered in San Francisco, US.