Feb 5 (Reuters) -

Semgrep said on Wednesday that it has raised $100 million in

a Series D funding round, as investor interest in AI-powered

solution continues.

The round was led by Menlo Ventures, with participation

from existing investors including Lightspeed Venture Partners,

Redpoint Ventures, and Sequoia Capital taking Semgrep's total

funding to $204 million.

Despite subdued activity in the broader venture capital

market, investor enthusiasm for artificial intelligence remains

robust as businesses race to integrate AI-driven efficiencies

into their operations.

Semgrep, whose customers include Hashicorp ( HCP ),

Gitlab ( GTLB ) and Snowflake, leverages AI to identify

security bugs, helping developers to write more secure code.

Demand for automated security programs has also risen

amid growing cyber threats, many of which also leverage AI

technologies, prompting enterprises to ramp up spending to

address vulnerabilities in their applications.

The company, which was founded in 2017, will use the

fresh capital to increase hiring in the AI and program analysis

space. It also plans to use the funds to boost its go-to-market

team.