Oak Emerges from Stealth with $60M to Solve the Identity Crisis AI Agents Are Creating

Israeli identity management startup Oak has launched out of stealth with $60 million in seed funding, targeting the growing identity chaos introduced by AI agents. Cofounded by veteran entrepreneur Shai Morag, Oak aims to fix the foundational security gaps that autonomous AI systems are rapidly exposing.

Israeli identity management startup Oak has officially emerged from stealth, armed with a $60 million seed round — one of the larger seed raises in the identity security space — to tackle a problem that's accelerating as fast as AI adoption itself: the identity mess that AI agents leave in their wake.

The Problem Oak Is Solving

Traditional identity and access management (IAM) was designed for humans logging into systems. AI agents change that equation dramatically. These autonomous systems spin up sessions, call APIs, impersonate users, chain together tools, and operate across services — often without consistent, auditable identity trails.

The result is a growing attack surface that legacy IAM vendors weren't built to handle. Every AI agent that acts on behalf of a user or service is a potential identity vulnerability, and enterprises are deploying these agents at scale before the security infrastructure has caught up.

The Founders

Oak was cofounded by Shai Morag, a senior entrepreneur with deep roots in the Israeli cybersecurity ecosystem — a community that has produced a disproportionate share of enterprise security companies over the past two decades. His cofounder is Tal Marom.

Israel's security talent pipeline, combined with strong institutional backing, has made Tel Aviv a recurring launchpad for identity and zero-trust startups that go on to define enterprise security categories.

Why $60M at Seed Is Noteworthy

A $60 million seed round signals serious investor conviction — both in the founding team and in the urgency of the problem. For context, most seed rounds in enterprise security land between $5M and $20M. Raising three to ten times that at the seed stage typically means investors are betting on a category-defining company, not just a product.

It also reflects the broader market dynamic: agentic AI has moved from experimental to production deployments faster than most enterprises anticipated, and the security tooling has not kept pace. Investors appear to be racing to back infrastructure plays that sit at this intersection.

Implications for Founders and Operators

For startup founders building on top of AI agents — whether for customer support, internal workflows, or automated decision-making — Oak's emergence is a signal worth paying attention to:

Identity governance for non-human entities is becoming a compliance requirement, not just a best practice
Agentic systems need auditable identity trails if enterprises are going to deploy them at scale
Security posture will increasingly be a procurement blocker — enterprise buyers will ask how your AI agents authenticate, what they can access, and how that access is logged

For security vendors and platform builders, Oak represents a direct challenge to incumbents like Okta, CyberArk, and SailPoint, none of which were architected with autonomous AI agents as first-class citizens.

The Broader Market Context

Oak isn't alone in identifying this gap. A handful of startups have begun attacking the non-human identity problem from different angles — some focusing on secrets management, others on runtime authorization for AI pipelines. What distinguishes Oak's positioning, based on available information, is the scope of the problem it's claiming: not just credentials or secrets, but the full identity lifecycle for AI agents operating in enterprise environments.

With $60 million and a founding team with credible enterprise security pedigree, Oak enters the market with enough runway to go after a category that, by most estimates, is only going to get more crowded — and more critical — as agentic AI moves deeper into enterprise infrastructure.