Israeli startup Arato Software has secured $10 million in seed funding to address a critical challenge: testing artificial intelligence applications before deployment.
The round was led by TLV Partners, with participation from Jibe Ventures and notable tech executives, including former VMware CEO Raghu Raghuram.
Arato's platform simulates thousands of user scenarios to identify potential failures and security risks in AI systems. This is vital because AI can generate unpredictable responses, unlike traditional software.
CEO Shahar Erez stated that organizations are deploying imperfect AI because they cannot afford to wait. "The question is how often it will fail and what the potential damage could be," he said.
The company reports dozens of customers, including in finance and industry. One industrial firm used Arato to reduce AI validation times from three months to days, cutting manual effort by 80%.
Erez co-founded the company with Hilik Paz and Tal Salmona. The pair previously co-founded Stoke Talent, which was acquired by Fiverr for $95 million in 2021.