Race Capital leads seed round; startup targets growth, model orchestration, and AI tool governance

Enterprise AI infrastructure startup Unbound has secured $4 million in seed funding to strengthen its platform that enables businesses to integrate generative AI tools securely and responsibly. The funding round was led by Race Capital, with participation from Y Combinator, Wayfinder Ventures, Massive Tech Ventures, and several prominent angel investors.

Founded in 2023 by Rajaram Srinivasan and Vignesh Subbiah, Unbound addresses growing enterprise concerns around data leakage, AI tool misuse, and lack of governance during AI adoption. Its flagship offering, the AI Gateway, helps IT teams enforce controls, gain real-time visibility, and manage access to generative AI tools across internal systems.

Solving Enterprise AI Integration Challenges

The AI Gateway integrates with commonly used developer tools like Cursor, Roo, Cline, and internal document copilots. It acts as a protective and analytical layer—providing real-time monitoring, model routing, and data policy enforcement.

The platform enables organizations to dynamically route requests to AI models such as OpenAI, Anthropic, Google’s Gemini, and open-source LLMs, based on sensitivity, cost, or performance needs.

According to the company, this level of control has enabled customers to roll out AI across departments quickly and safely. One customer recently deployed Google’s Gemini 2.5 AI model to over 100 engineers within a week, showcasing the platform’s scalability.

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Robust Data Protection in a GenAI World

Unbound’s security framework is designed to prevent the loss of sensitive data, a growing concern for enterprises experimenting with AI tools. The startup claims to have already:

• Blocked hundreds of secret credentials (passwords, API keys, connection strings)
• Intercepted over 500 instances of Personally Identifiable Information (PII), including patient records, names, and contact numbers

These features help organizations comply with strict regulatory environments such as HIPAA, GDPR, and internal data policies, particularly in high-risk sectors like healthcare and finance.

Funding to Drive Expansion and R&D

The fresh capital will fuel Unbound’s growth in India, where it plans to build its engineering and go-to-market teams. Additional funds will be directed toward:

• Expanding integrations with third-party AI services and developer tools
• Enhancing model routing intelligence based on content types and business rules
• Supporting open-source LLM orchestration for companies opting for in-house models

The founders emphasized that Unbound is focused on helping enterprises strike a balance between innovation and control as they scale their AI efforts.

Competing in a Crowded Security Landscape

Unbound enters a competitive field that includes legacy cybersecurity firms like Broadcom’s Symantec DLP, Palo Alto Networks, and Netskope, as well as AI-native startups such as Lasso and Aim Security.

What sets Unbound apart is its AI-first architecture—tailored not just for data loss prevention but for holistic AI governance, including user behavior analytics, API usage transparency, and dynamic policy enforcement across AI tools.

Securing the Future of Enterprise AI

As businesses rush to integrate generative AI across departments, risks surrounding data privacy, shadow AI use, and cost overruns have become more pressing. Unbound’s mission is to give IT and security teams the tools to enable AI innovation without losing control.

With backing from top-tier investors and growing adoption among mid-market and enterprise clients, Unbound is poised to become a key enabler of responsible AI deployment in modern enterprises.

Conclusion

As the global enterprise landscape rapidly embraces generative AI, concerns around security, compliance, and operational control continue to mount. Unbound is emerging as a vital enabler in this transformation, offering companies the tools to innovate confidently without compromising on data integrity or governance. Backed by leading investors and already delivering measurable impact for early adopters, Unbound is well-positioned to shape the next chapter of safe, scalable AI adoption in enterprises worldwide.

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