Daylight Security: Investing in the Future of Managed Agentic Security Services

Today we’re excited to announce that Craft Ventures is leading the $33 million Series A in Daylight Security, alongside insiders Enrique Salem at Bain Capital Ventures and Ben Tytonovich at Maple VC. We are thrilled to be on this journey alongside them.

Daylight is pioneering what founders Hagai Shapira and Eldad Rudich have coined Managed Agentic Security Services (MASS).

For the past two decades, managed services companies have been arming their human-centric businesses with workflow software and automation tools. Now we are witnessing a new wave of “agent-native” companies disrupting these sectors.

Security services, a market exceeding $50 billion annually, is the next major opportunity for agent-native companies and the impact will be step-function improvements in speed, accuracy, cost, and scalability of these services.

Few people understood this opportunity better than Hagai and Eldad. Before founding Daylight, they led product development at Torq, where they saw firsthand the automation needs within security operations. From our very first meetings with Daylight, it was clear they had a deep understanding of the opportunity and laid out the most concise and ambitious vision of the future of agentic security services. They had also already proven how quickly they could turn their vision into a solution that customers loved, and these things together are the mix of qualities we love to invest in.

Daylight came out of stealth just 3 months ago with their Agentic Managed Detection and Response (MDR) solution, which addresses a market with $12.5Bn of customer spend annually, growing at 26%.

The MDR market is ripe for disruption, full of incumbents that emerged over a decade ago, leveraging static machine learning rules to filter security alerts and augment their human SOC services. That model was largely a success as the best MDRs reached hundreds of millions of ARR. However, they’ve had to spend the last decade honing their integrations, algorithms, and internal operations to drive toward “software-like” gross margins. Along the way, they’ve had to make many sacrifices, which has led to low NPS across much of the industry, and a whole host of acquisitions—and likely more to come.

Daylight is reimagining the MDR model, leveraging cutting edge AI agents with highly skilled humans to deliver a service quality that is currently orders of magnitude superior to incumbents. After only 10 months of operations, they are already bringing these capabilities to dozens of enterprises.

Over the last few quarters, we spent time discussing Daylight with their customers and security leaders in the Craft CISO Council and extended network. We heard commentary about how Daylight “reduces alert volume by >90%,” “makes detections that would have otherwise evaded existing tools,” and “delivers up to 75% cost reduction versus incumbents.” The feedback around Daylight’s service quality versus traditional MDRs clustered around the following high impact areas:

It’s no wonder that leading analysts are already forecasting that the traditional MDR model of “triage and escalate” will become obsolete within 2–3 years.

Looking ahead, we’re eager to support Daylight as they drive forward the future of MDR, as well as pioneer this next frontier of MASS — Managed Agentic Security Services.

The future is bright for Daylight ☀️