Physical AI Security
Coram AI Raises $35 Million Series B for Proactive Physical Security Expansion
Key Points
The Series B was co-led by Ansa Capital and Battery Ventures and included participation from UP.Partners, 8VC and Mosaic Ventures.
Coram declined to share its valuation with Business Insider.
Co-founder and CEO Ashesh Jain contrasted Coram’s approach with conventional security systems, saying: “Most security systems just record what happened. Only later, after a manual search, might you find the incident,” adding that Coram applies the same idea as autonomous vehicles—“catch risks earlier”—to “keep schools, hospitals and workplaces safer instead of just documenting what went wrong.”
Business Insider cited PitchBook data showing investor interest in “physical AI” has surged—from about $4 billion in 2019 to $26 billion in 2025—and noted that physical-AI companies have raised more than $23 billion so far this year.
Business Insider detailed why investors are wary about physical-security incumbents, citing Verkada’s 2021 breach in which hackers accessed “more than 150,000 live customer cameras,” including inside hospitals and schools; it also named other competitors such as Motorola Solutions’ Avigilon and Eagle Eye Networks.
Coram AI has raised $35 million in a Series B round co-led by Ansa Capital and Battery Ventures, bringing the Sunnyvale startup's total funding to $66 million Business Wire. The company builds AI-powered physical security software that connects cameras, badge readers, and visitor logs into a single platform — without requiring businesses to rip out their existing hardware.
Since its $13.8 million Series A in January 2025, Coram has grown fast. Revenue quadrupled, its customer base tripled, and the platform now runs at more than 1,500 locations across the U.S. and Canada Business Standard.
From Autonomous Cars to Security Cameras
Coram's two co-founders, Ashesh Jain and Peter Ondruska, both came from the self-driving car industry. Jain was Head of Autonomy at Lyft and Zoox. Ondruska led AI Research at Lyft and Toyota's Woven division IndianWeb2. Their idea: take the same AI that helps cars spot danger before a crash, and use it to protect schools, hospitals, and offices.
Jain put it plainly: "Most security systems just record what happened. Only later, after a manual search, might you find the incident" Business Wire. Coram's platform is meant to catch problems in real time — not just document them after the fact.
Verkada's 2021 Breach Opened the Door for Rivals
The physical security industry has had a rough few years. In March 2021, hackers broke into Verkada's systems and accessed more than 150,000 live customer cameras — including feeds inside hospitals, schools, and jails Business Insider. The incident rattled the industry. In 2024, the Federal Trade Commission fined Verkada $2.95 million for security failures and spam violations Federal Trade Commission.
That breach created an opening for startups like Coram, which processes data on-premise rather than in the cloud. Competitors include Motorola Solutions' Avigilon and Eagle Eye Networks Business Insider. Battery Ventures partner Marcus Ryu, who sits on Coram's board, said the company's hardware-agnostic approach eliminates the "rip-and-replace" costs that have long frustrated security buyers.
Physical AI Investment Surged to $26 Billion in 2025
Coram's raise reflects a much bigger trend. According to PitchBook data cited by Business Insider, investor interest in "physical AI" — systems that act in the real world, like robots and smart cameras — jumped from about $4 billion in 2019 to $26 billion in 2025. Physical AI companies have already raised more than $23 billion in the first half of 2026 alone.
The global physical AI market could reach $500 billion by 2030, according to Forbes. Ansa Capital co-founder Allan Jean-Baptiste said physical security is "one of the largest industries yet to be transformed by modern AI" The Next Web. UP.Partners, 8VC, and Mosaic Ventures also joined the Series B round.
Bengaluru Hub and Surveillance Concerns Cloud the Rollout
Coram plans to use the new capital to expand its engineering team in Bengaluru, India, which it calls a key hub for global AI development Economic Times. It will also invest in go-to-market teams and customer support. Notable customers already include Fortune 500 companies, 1-800-GOT-JUNK?, Hershey's Ice Cream, and the World YMCA Business Wire.
But expansion into schools and hospitals comes with scrutiny. The Next Web noted that Coram's platform pushes features like facial recognition and gun detection into sensitive spaces. New Jersey recently passed a bill requiring schools to disclose what AI surveillance data they collect. Critics argue that "proactive safety" tools can quickly become tools for constant, pervasive monitoring.
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