Riptides Makes Waves with Record Pre-Seed Funding in Hungary
April 23, 2025, 9:54 pm
In the heart of Budapest, a storm is brewing in the tech world. Riptides, a bold startup, has secured $3.3 million in pre-seed funding. This isn’t just any funding round; it’s a record-breaker. It stands as Hungary’s largest pre-seed round to date and one of the biggest in Central and Eastern Europe. The money will fuel the launch of Riptides’ innovative platform for secure non-human identity management.
The funding round is led by PortfoLion Capital Partners from Hungary and Kaya VC from the Czech Republic. They are joined by a host of angel investors, both local and international. This diverse backing reflects the growing interest in cybersecurity, especially in a world where machines increasingly interact without human oversight.
Riptides is not alone in this venture. It rides the wave of a new generation of Hungarian security startups. Companies like SEON have already made headlines, raising $94 million in 2022 to combat identity fraud. Riptides aims to carve its niche in the rapidly evolving landscape of digital security.
The founding team of Riptides is a powerhouse. CEO Márton Sereg and Head of R&D János Mátyás previously co-founded Banzai Cloud, which was acquired by Cisco. Their experience is invaluable. They are joined by CTO Zsolt Varga, who played a crucial role at Banzai Cloud, and CISO Nándor Krácser, who brings over 15 years of experience from Cisco and IBM. This team is seasoned, having navigated the choppy waters of tech startups before.
The problem Riptides addresses is pressing. Non-human identities—think machine-to-machine interactions—now outnumber human users by a staggering 50 times. Yet, these identities remain the most vulnerable part of enterprise systems. Traditional security tools, designed for human users, are ill-equipped to handle this new reality. Static secrets like API keys and tokens are becoming obsolete. They are the old guard in a world that demands innovation.
Recent breaches highlight this vulnerability. In 2024, a compromised machine token led to a significant breach affecting the U.S. Department of the Treasury. This incident underscores the urgent need for a new approach to identity management. Riptides aims to fill this gap.
The startup’s solution is revolutionary. Riptides replaces traditional credentials with cryptographically verifiable identities. These identities are automatically issued and rotated, eliminating the need for manual management. This innovation allows machines to authenticate each other seamlessly, encrypt connections, and control access without relying on outdated static secrets.
The vision is clear. By adopting unified, cryptographic identities, Riptides seeks to secure communications across AI agents, data center services, and third-party integrations. This approach lays the groundwork for true zero-trust connectivity at scale. In a world where machines talk to machines, identity is paramount.
Investors are taking notice. Daniel Kiss-Kiraly from PortfoLion Capital Partners expressed excitement about the potential of Riptides. He noted that companies spend billions on identity and access management solutions, yet many lack the functionality to manage the growing number of non-human identities. Riptides aims to set a new standard in this space.
Karel Zheng from Kaya VC echoed this sentiment. He emphasized the importance of Riptides’ technology, which integrates deeply into enterprise systems. This integration provides a tamper-proof, frictionless way to secure service-to-service calls. It’s a game-changer for enterprises looking to bolster their security posture.
As Riptides prepares to launch its platform, the implications are vast. The startup is poised to redefine how organizations manage non-human identities. The potential for growth is immense, especially as more enterprises transition to AI-first strategies.
In a landscape where cyber threats are evolving, Riptides offers a beacon of hope. The startup is not just about securing identities; it’s about building trust in a digital world. As machines become more autonomous, the need for robust security measures will only increase.
The journey ahead is challenging, but Riptides is ready to navigate the waters. With a strong team, significant funding, and a clear vision, the startup is set to make waves in the cybersecurity arena. The future of non-human identity management is bright, and Riptides is leading the charge.
In conclusion, Riptides is more than just a startup; it’s a harbinger of change. As it embarks on this journey, the tech world will be watching closely. The stakes are high, but so are the rewards. In a realm where identity is everything, Riptides is poised to become a key player. The age of agentic workflows is here, and Riptides is ready to ride the wave.
The funding round is led by PortfoLion Capital Partners from Hungary and Kaya VC from the Czech Republic. They are joined by a host of angel investors, both local and international. This diverse backing reflects the growing interest in cybersecurity, especially in a world where machines increasingly interact without human oversight.
Riptides is not alone in this venture. It rides the wave of a new generation of Hungarian security startups. Companies like SEON have already made headlines, raising $94 million in 2022 to combat identity fraud. Riptides aims to carve its niche in the rapidly evolving landscape of digital security.
The founding team of Riptides is a powerhouse. CEO Márton Sereg and Head of R&D János Mátyás previously co-founded Banzai Cloud, which was acquired by Cisco. Their experience is invaluable. They are joined by CTO Zsolt Varga, who played a crucial role at Banzai Cloud, and CISO Nándor Krácser, who brings over 15 years of experience from Cisco and IBM. This team is seasoned, having navigated the choppy waters of tech startups before.
The problem Riptides addresses is pressing. Non-human identities—think machine-to-machine interactions—now outnumber human users by a staggering 50 times. Yet, these identities remain the most vulnerable part of enterprise systems. Traditional security tools, designed for human users, are ill-equipped to handle this new reality. Static secrets like API keys and tokens are becoming obsolete. They are the old guard in a world that demands innovation.
Recent breaches highlight this vulnerability. In 2024, a compromised machine token led to a significant breach affecting the U.S. Department of the Treasury. This incident underscores the urgent need for a new approach to identity management. Riptides aims to fill this gap.
The startup’s solution is revolutionary. Riptides replaces traditional credentials with cryptographically verifiable identities. These identities are automatically issued and rotated, eliminating the need for manual management. This innovation allows machines to authenticate each other seamlessly, encrypt connections, and control access without relying on outdated static secrets.
The vision is clear. By adopting unified, cryptographic identities, Riptides seeks to secure communications across AI agents, data center services, and third-party integrations. This approach lays the groundwork for true zero-trust connectivity at scale. In a world where machines talk to machines, identity is paramount.
Investors are taking notice. Daniel Kiss-Kiraly from PortfoLion Capital Partners expressed excitement about the potential of Riptides. He noted that companies spend billions on identity and access management solutions, yet many lack the functionality to manage the growing number of non-human identities. Riptides aims to set a new standard in this space.
Karel Zheng from Kaya VC echoed this sentiment. He emphasized the importance of Riptides’ technology, which integrates deeply into enterprise systems. This integration provides a tamper-proof, frictionless way to secure service-to-service calls. It’s a game-changer for enterprises looking to bolster their security posture.
As Riptides prepares to launch its platform, the implications are vast. The startup is poised to redefine how organizations manage non-human identities. The potential for growth is immense, especially as more enterprises transition to AI-first strategies.
In a landscape where cyber threats are evolving, Riptides offers a beacon of hope. The startup is not just about securing identities; it’s about building trust in a digital world. As machines become more autonomous, the need for robust security measures will only increase.
The journey ahead is challenging, but Riptides is ready to navigate the waters. With a strong team, significant funding, and a clear vision, the startup is set to make waves in the cybersecurity arena. The future of non-human identity management is bright, and Riptides is leading the charge.
In conclusion, Riptides is more than just a startup; it’s a harbinger of change. As it embarks on this journey, the tech world will be watching closely. The stakes are high, but so are the rewards. In a realm where identity is everything, Riptides is poised to become a key player. The age of agentic workflows is here, and Riptides is ready to ride the wave.