March 19, 2025
California-Based AI Startup Arcade AI Raises $12M in Seed Funding to Enhance Agent Authentication and Tool-Calling
South San Francisco, California —
Arcade AI or Arcade.dev, a tool-calling platform enabling AI to securely take action through authenticated integrations with email, files, calendars, and APIs, has raised $12 million in seed funding. Announced on March 18, 2025, the round was led by Laude Ventures, with participation from Flybridge Ventures, Hanabi Capital, Neotribe, and Andy Rachleff. The funding will support the advancement of its agent authentication and tool-calling platform.
About Arcade AI
Founded in 2024 by Alex Salazar and Sam Partee, Arcade AI is developing an infrastructure platform that enables AI agents to securely access applications and data, improving their functionality and reliability. By integrating with OAuth authentication and providing secure token management, Arcade AI allows AI agents to interact with thousands of SaaS services while maintaining security and compliance.
Purpose of financing
With the newly raised capital, the company plans to accelerate product development, expand its engineering team, and scale its integrations with enterprise applications. Additionally, Arcade AI aims to enhance its security framework to support a broader range of AI-powered automation solutions for businesses.
CEO’s Insights
Alex Salazar, Co-founder and CEO of Arcade AI, stated:
"AI agents have immense potential, but their effectiveness has been limited by authentication and tool integration challenges.” ”Our mission is to bridge this gap, making AI agents more capable and reliable for enterprise use. This investment will help us push the boundaries of AI agent infrastructure."
Investor Perspective
Pete Sonsini, Co-founder and General Partner, Laude Ventures also expressed confidence in Arcade AI's approach:
"We believe Arcade AI is tackling a crucial problem in AI adoption. Their focus on agent authentication and tool-calling infrastructure aligns with the needs of enterprises looking for robust AI solutions."
Conclusion
With this funding, Arcade AI is well-positioned to drive innovation in AI agent technology, further solidifying its role in the enterprise AI ecosystem.
For updates,visit Arcade AI on Linkedin.