Folksoft and NuGuard AI Partner to Advance AI Security and Compliance for Growing Businesses

PLANO, Texas — October 29, 2026 — Folksoft, the compliance co-founder for startups and scaleups, today announced a strategic partnership with NuGuard AI to strengthen AI security, behavioural validation and compliance readiness for growing businesses. By combining Folksoft’s automated GRC capabilities, dedicated virtual CISO (vCISO) expertise and independent AICPA-accredited auditors with NuGuard AI’s behavioural validation technology, the partnership helps startups establish stronger security practices and demonstrate AI trust to enterprise customers.

As businesses increasingly adopt AI-powered products, enterprise buyers are demanding more than traditional security certifications. They want evidence that AI applications operate securely and follow defined policies. Through this partnership, Folksoft extends its compliance capabilities to help customers address emerging AI security requirements, strengthen governance and prepare for enterprise security reviews.

Advancing Compliance. Strengthening AI Trust.

Folksoft brings together compliance automation, dedicated expertise and independent audit coordination to help startups achieve and maintain compliance across more than 20 frameworks, including SOC 2, ISO 27001, ISO 42001, HIPAA, GDPR and NIST. Its capabilities include automated evidence collection across AWS, Azure, GCP and 50+ business applications, continuous compliance monitoring and autonomous remediation agents. Every customer receives dedicated vCISO guidance from Day 1, covering risk assessments, security policies, compliance implementation and audit preparation.

Folksoft’s approach goes beyond compliance automation by providing startups with a dedicated partner who takes ownership of their compliance journey. By combining technology, hands-on guidance and AICPA-accredited independent auditors, Folksoft helps businesses reduce compliance complexity, prepare for audits and unblock enterprise deals.

NuGuard AI strengthens this offering through continuous behavioural validation of AI applications. Its technology discovers AI models, tools and APIs, establishes behavioural policies and performs more than 1,000 adversarial tests per AI application in a sandbox. The resulting evidence includes behavioural policies, testing results and reporting aligned with OWASP, NIST AI and PCI requirements.

Folksoft maps relevant AI validation evidence to compliance controls across frameworks such as SOC 2, ISO 27001 and ISO 42001, helping customers strengthen their AI governance and respond to evolving enterprise security expectations.

“Our commitment is to help startups manage compliance through one dedicated partner that brings together the technology, expertise and independent audit support they need. As AI adoption grows, security expectations are evolving beyond traditional compliance. Our partnership with NuGuard AI strengthens our ability to help customers validate AI behaviour, address emerging risks and build the trust required to move enterprise opportunities forward,” said Viresh Managooli, CEO and Co-Founder of Folksoft.

“AI-native startups can no longer close enterprise deals on a SOC 2 report alone as buyers now want proof that the AI itself behaves as intended,” said Ranjan Goel, CEO and Founder of NuGuard AI. “Folksoft already owns the compliance outcome for its customers. With our AI Trust Platform in the program, Folksoft can show auditors and enterprise buyers validated evidence of how every AI application behaves.”

Addressing the Growing AI Security Gap

AI adoption is accelerating, but many organisations are still struggling to establish effective security and governance practices. According to Cisco’s State of AI Security 2026 report, 83% of organisations planned to deploy agentic AI, while only 29% felt prepared to do so securely. IBM’s 2026 Cost of a Data Breach Report found that more than 20% of organisations experienced breaches targeting their AI models or applications, with AI-enabled breaches costing an average of $6 million.

Netskope’s 2026 AI Risk and Readiness Report found that although 73% of organisations have deployed AI, only 7% use real-time policy enforcement, while 91% learn what an AI agent has done only after it acts.

Smaller businesses face similar challenges. A 2026 IDC study commissioned by Sage found that 81% of small and medium-sized businesses are unprepared or in the early stages of preparing for AI-related threats, while 22% have no dedicated protection for their AI applications.

For startups, these gaps can create additional challenges during enterprise security reviews, delaying approvals and business opportunities. Folksoft and NuGuard AI aim to address these challenges by combining structured compliance management with AI behavioural validation, helping businesses establish stronger security evidence before entering enterprise engagements.

Frequently Asked Questions

What does the Folksoft and NuGuard AI partnership offer?

The partnership combines Folksoft’s compliance expertise with NuGuard AI’s behavioural validation capabilities. It helps businesses test AI applications, identify potential risks and generate evidence supporting compliance frameworks such as SOC 2, ISO 27001 and ISO 42001.

Who is the partnership for?

Startups and scaleups building AI-powered products, particularly those selling into regulated industries such as BFSI, healthcare and eCommerce.

How does Folksoft contribute to the partnership?

Folksoft leads the compliance journey through automation, dedicated vCISO guidance, compliance management and independent audit coordination.

What does NuGuard AI contribute?

NuGuard AI validates AI application behaviour through policy development and adversarial testing, helping businesses identify potential security risks.

How can businesses get started?

Folksoft customers and prospects can request a free one-week assessment through https://nuguard.ai/partners/folksoft or book a discovery call with Folksoft.