TLDR: InCountry has successfully raised $10 million in a funding round led by Arbor Ventures, with additional participation from Caffeinated Ventures and new investor Accelerator Ventures. Concurrently, the company launched AgentCloak, an innovative AI agent data protection solution designed to ensure data privacy, compliance, and sovereignty for AI operations across borders.
SAN FRANCISCO – September 22, 2025 – InCountry, a leading provider of data protection solutions operating at the nexus of artificial intelligence, identity, and data sovereignty, today announced the successful closure of a $10 million funding round. The investment was spearheaded by Arbor Ventures, with continued support from Caffeinated Ventures and a new strategic investment from Accelerator Ventures. This capital injection is earmarked to accelerate the global deployment of InCountry’s newly launched flagship product, AgentCloak.
AgentCloak represents a significant leap forward in AI agent data protection, offering a next-generation solution to safeguard sensitive information. As AI continues its rapid integration across various industries, the imperative for robust data privacy, trust, and regulatory compliance has never been more critical. AgentCloak addresses these challenges by deploying sophisticated, tuned AI capabilities to deliver a novel approach to data minimization and cross-border AI sovereignty.
The solution’s core functionality includes the generalization of sensitive data, transforming specific details into broader categories to enhance privacy without compromising utility. For instance, AgentCloak can convert a precise location like ‘Berlin’ into a regional identifier such as ‘EU,’ an exact age ’32’ into an age bracket ’30-39,’ and a medical term like ‘headache’ into a ‘minor neurological condition.’ This intelligent data transformation ensures that AI agents can operate effectively while adhering to stringent privacy standards.
Furthermore, AgentCloak’s AI is capable of identifying and isolating information pertaining to separate individuals within complex interactions, exemplified by its ability to process a statement like ‘I’m writing about my father’s test results’ to provide robust data minimization. For operations within specific countries, AgentCloak utilizes ‘Sovereign AIs’ that are meticulously trained on local names, addresses, and vernacular, enabling precise detection of sensitive data, including specialized medical terminology.
Built upon InCountry’s established digital twin technology, AgentCloak secures and ‘cloaks’ data, allowing AI agents to function seamlessly across international borders while maintaining compliance with a diverse array of data privacy and AI regulations. These include, but are not limited to, the EU AI Act, China’s Personal Information Protection Law (PIPL), and Saudi Arabia’s Personal Data Protection Law (PDPL).
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AgentCloak integrates effortlessly into existing agentic workflows, supporting deployment as an MCP Server, MCP Proxy, or A2A Proxy. It also facilitates the training of AI agents and the incorporation of Retrieval Augmented Generation (RAG) techniques through the use of cloaked digital twins, with the capability to uncloak data via identity-based authorization. This comprehensive approach ensures that enterprises can leverage the full potential of AI agents while upholding the highest standards of data protection and regulatory adherence.
