Riptides, a cybersecurity startup based in Central and Eastern Europe (CEE), has announced $3.3 million in pre-seed funding to launch its platform focused on managing secure non-human identities. This funding round, one of the largest pre-seed rounds in the region. Will support the company’s mission to replace static credentials with cryptographically verifiable identities that are automatically created and rotated.
The funding, led by PortfoLion Capital and Kaya VC, with contributions from Cloudbreak and several angel investors. Marks a significant step for the company and the CEE startup ecosystem. The round is also a testament to the region’s growing reputation for deep-tech innovation, particularly in cybersecurity.
Riptides is Tackling the Vulnerability of Non-Human Identities
The need for secure machine-to-machine communication has never been more urgent. In 2024, a breach of a machine token in BeyondTrust’s Remote Support SaaS platform exposed significant vulnerabilities in U.S. Department of the Treasury systems. Attackers exploited static credentials, bypassing controls meant for human users. This incident highlighted a critical issue: non-human identities now outnumber human users by 50 to 1. Yet they are often the weakest link in enterprise security.
Riptides aims to solve this problem by eliminating the reliance on static API keys, tokens, and passwords. Instead, their platform generates and rotates dynamic, short-lived identities that ensure secure, authenticated machine communication. These identities enable agents and workloads to authenticate one another, encrypt connections, and manage access without exposing the system to static secrets.
Riptides is set to revolutionize how enterprises manage non-human identities, particularly in cloud-native and AI-driven infrastructures. The company’s platform replaces traditional secrets management tools. Which are often overwhelmed by the sheer volume and complexity of managing non-human identities. The cryptographic identities Riptides provides automate credential issuance and rotation, shifting access control from network-based layers to workload and kernel levels. Thereby reducing risks of human error and credential sprawl.
The startup is already working with AI-first companies and enterprises looking to move away from outdated secrets management solutions. Their platform enables more secure, scalable management of identities across cloud environments and AI systems.
Riptides Experienced Founding Team
Riptides was co-founded by a team of cybersecurity experts, including Márton Sereg, János Mátyás, Zsolt Varga, and Nándor Krácser, who all bring substantial experience from previous ventures. Notably, the team co-founded Banzai Cloud, which was acquired by Cisco, and Sequenceiq, which was acquired by Hortonworks.
Their combined expertise in enterprise security and cloud-native infrastructure positions Riptides to address the critical needs of modern businesses in managing machine identities. “We’re excited to back the Riptides team as they build the new standard in non-human identity management for the age of agentic workflows,” said Daniel Kiss-Kiraly, VC at PortfoLion Capital Partners.
Machine Identity as a Foundation for Secure Workload Communication
Riptides’ platform represents a shift from human-centric to machine-first security, a necessary change in today’s cloud-native and AI-driven environments. Traditional security models, such as firewalls and VPNs, are increasingly inadequate to handle the dynamic, ephemeral nature of modern workloads. Riptides, however, enforces access control at the workload and kernel levels, creating a more secure environment for service-to-service communication.
“We’re excited to back Márton, Zsolt, and the Budapest team as they build the non-human identity layer of the modern internet,” said Karel Zheng, investor at Kaya VC.
As the volume of machine-to-machine interactions continues to grow. Riptides is positioning itself as a leader in the emerging zero-trust model for modern applications and AI systems. By adopting cryptographic identities, Riptides ensures that every workload and AI agent is authenticated, enabling zero-trust connectivity at scale.
“Identity is everything in a world where machines talk to machines,” said Márton Sereg, co-founder and CEO of Riptides. “Riptides is building the infrastructure to make secure, identity-driven communication a reality across AI agents, data center services, and third-party integrations.”
The Growing Need for Secure Non-Human Identities
As machine identities are projected to grow by 30% annually, Riptides is poised to lead the way in building a more secure, scalable framework for managing these identities. The company’s focus on reducing risks associated with static secrets and credential sprawl will help organizations move toward a future where every interaction, human or machine, is securely authenticated by design.
Riptides’ $3.3 million funding marks a pivotal moment in the CEE region’s tech ecosystem. Demonstrating Hungary’s increasing prominence as a hub for deep-tech innovation. The company’s platform is set to play a crucial role in the zero-trust future. Where machine-to-machine trust is foundational to modern cybersecurity.
