Identity management in the workplace was once straightforward. A physical badge, a password, and a few access controls sufficed. Now, with AI agents and machines operating alongside humans in digital spaces, those old systems fail.
Oak, an Israeli startup, has introduced a new solution to this issue. The company developed a unified control plane that manages identity across an organization, replacing outdated tools that were not built for an AI-driven environment. It has already been adopted by enterprise clients and secured $60 million in seed funding.
AI complicates identity management
Traditional identity and access management (IAM) systems were designed for a different time. They depend on periodic reviews and manual processes, leaving vulnerabilities that AI agents can exploit. Oak’s co-founder Shai Morag, a former army major with over 20 years in cybersecurity, describes the current system as “operations-based, not risk-based.”
Permissions are not adjusted in real time but reviewed only every few months. That lag creates security risks, particularly as AI agents gain broader access to company systems. Oak’s approach uses an AI connector framework that ties access to actual app usage, removing unnecessary permissions automatically. The company consulted 100 chief information security officers and IAM leaders before developing the product, Tal Marom, Oak’s chief product officer and co-founder, stated.
The startup is not the first to address this challenge, but it markets itself as AI-native—a replacement for tools that were already inadequate before AI agents became widespread. Morag aims to resolve the “identity mess” that AI is worsening.
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A $60 million investment in expertise
Oak’s funding round was co-led by Accel, CRV, and Greylock Partners, with contributions from AlphaDrive Ventures, Hetz Ventures, and angel investors. The $60 million seed round stands out in Israel, signaling strong confidence in Morag’s background.
Morag has three previous exits, including the sale of his cybersecurity startup Secdo to Palo Alto Networks in 2018. His most recent venture, Ermetic, was acquired by Tenable for $265 million in 2023. After Tenable’s CEO Amit Yoran died, Morag left the company and co-founded Oak with Marom, a former colleague from Tenable.
Accel partner Andrei Brasoveanu cited Morag’s experience as a major reason for the investment. “I knew he could build another company, this time on a larger scale,” Brasoveanu said. While Accel has supported young founders in AI, he noted that identity management demands deep knowledge. “The product is complex, and selling it requires handling organizational structures.”
The startup has expanded to 50 employees and continues hiring, especially in the U.S. Morag expects most of its team to be based there soon. Oak has not disclosed its enterprise clients but confirmed the product is available.
Morag views this as his final venture. “I will go big or go home,” he said. It reflects a mindset common in cybersecurity, where risks keep increasing. AI agents represent a new type of user, one that legacy IAM systems were never equipped to handle.
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Oak sees its chance in that gap. Investors appear to agree, given the $60 million funding. The challenge lies in whether enterprises will trust a startup with something as vital as identity management in an AI-driven world.
Competitors are already entering the space, and vendor lock-in remains a hurdle in IAM. But as AI adoption grows, the demand for better identity management will persist. If Oak’s method succeeds, it could set a new standard for securing access in the era of AI agents.
The timing may be ideal. Most enterprises are still determining how to integrate AI into their workflows, often treating security as an afterthought. Oak’s message is clear: address identity issues before they escalate.
Morag’s previous work in cybersecurity has prepared him for this challenge.
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