Oak raises $60 million to revolutionize AI identity management

Oak Positions Itself to Modernize Digital Identity Management

Not too long ago, physical badges were sufficient for managing identities within companies. However, the shift towards digital environments where humans, machines, and artificial intelligence agents collaborate has rendered these tools obsolete. Even cloud-based identity solutions are showing their limitations in the face of this growing complexity.

It is precisely in this gap that the Israeli startup Oak steps in. Co-founded by Shai Morag, a serial entrepreneur, Oak has developed a unified control plan aimed at regulating identity within organizations. After a discreet development phase, this solution is now publicly available and already adopted by several companies, backed by an initial funding of $60 million raised last year.

A Solution Already Adopted by Companies, but Clients Remain Anonymous

Although the company has not disclosed the names of its clients, it claims that its solution is widely available and used by businesses. Oak positions itself as an alternative to aging identity and access management (IAM) systems, which are often poorly managed and represent a security vulnerability. With the rise of AI, these vulnerabilities could be more easily exploited by attackers.

Oak presents itself as an AI-native company, ready to replace these legacy tools with a consolidated solution that did not previously exist. The goal is to provide more secure identity management tailored to modern challenges.

An AI Connector Framework for Real-Time Management

Tal Marom, co-founder and product director of Oak, explains that the startup spent months engaging with around a hundred Chief Information Security Officers (CISOs) and IAM leaders before designing its product. The solution is based on an AI connector framework that maps access to applications based on actual usage. It allows for the real-time revocation of unnecessary permissions, rather than relying solely on periodic reviews.

Shai Morag, a former army major and cybersecurity veteran, emphasizes that the current identity management process is too manual and operationally focused rather than risk-oriented. For instance, there is no alert mechanism when an employee logs in from an unusual location.

A Strong Entrepreneurial Journey and Ambitions of a Giant

Morag's journey has enabled Oak to raise a significant amount by local standards, which he plans to invest heavily in research and development as well as growth. He has already achieved several successful exits, including the sale of his startup Secdo to Palo Alto Networks in 2018.

After selling his startup Ermetic to Tenable for $265 million in 2023, Morag briefly considered retirement. However, the passing of CEO Amit Yoran prompted him to co-found Oak with Tal Marom, whom he had met at Tenable. Together, they have built a team of 50 people and are actively recruiting, particularly in the United States where most of the staff will soon be based.

Strong Financial Backing and an Ambitious Vision

Oak's $60 million funding round was co-led by Accel, CRV, and Greylock Partners, with participation from AlphaDrive Ventures, Hetz Ventures, and private investors. Morag indicated that interest from venture capitalists was strong from the outset.

Andrei Brasoveanu, a partner at Accel, highlighted that Morag's track record was a major asset. Accel had already supported Ermetic before its first revenues and has renewed its confidence in Morag for his new venture. Brasoveanu is convinced that Morag has the capability to build an even larger and better company this time around.

A Competitive but Promising Market

With AI seen as a democratizing force, Accel supports founders right out of high school. However, in the field of identity management, experience remains crucial. Brasoveanu notes the complexity of the product and the organizations navigating to succeed in this sector.

Oak will face numerous competitors looking to leverage AI as a change agent in a market where vendor lock-in is deep. For Oak, rapid growth is essential. Morag, who promised his wife that this would be his last company, is determined to give his all before retiring.