Claroty has raised a whopping $60 million in a second round of funding to build its cybersecurity for industrial infrastructure.
The rapidly expanding cybersecurity market is the result of a “perfect storm” that has placed industrial networks running critical global infrastructures in the spotlight.
“Our unparalleled investor syndicate, which includes some of the most important industrial companies in the world, is a ringing endorsement of Claroty’s technology and the progress our team has made,” said Claroty CEO Amir Zilberstein, in a statement. “Our mission is to protect the most critical networks on the planet, and our comprehensive platform provides our customers with the capabilities they need to accomplish this vitally important task.”
Old and insecure industrial control networks, which used to be “air-gapped,” are now being rapidly connected to networks and exposed to a range of risks. These networks are increasingly targeted by advanced nation state adversaries who are determined to harvest information and gain a persistent presence for potential future attacks.
In 2017, industrial networks also became collateral damage in ransomware attacks like WannaCry and NotPetya, which cost companies billions in losses.
The round includes lead investor Temasek, as well as Rockwell Automation, Siemens (Next 47), Schneider Electric (Aster Capital), Envision Ventures, and others. Original Claroty investors Bessemer Venture Partners, Team8, Innovation Endeavors, and ICV all participated in the round. To date, the company has raised a total of $93 million.
Founded in 2014, the New York company has grown its customer base 357 percent from a year ago. Claroty now has large-scale customers with production installations across six continents in nine market segments, including electric utilities, oil and gas, chemical, water, manufacturing, food and beverage, mining, and real estate (building management systems, datacenters, and warehouses).
“A perimeter defense to cybersecurity in today’s connected world is not enough. An end-to-end approach, with solutions that provide deep visibility into operational technology and industrial control systems, is critical for the security of heavy processing environments,” said Hervé Coureil, chief digital officer at Schneider Electric, in a statement. “Leading the digital transformation of energy management and automation, Schneider Electric takes cybersecurity very seriously, and the partnership with Claroty complements the cybersecurity layer of our internet-of-things-enabled EcoStruxure architecture.”
Claroty’s cybersecurity platform provides visibility into industrial networks and combines secure remote access with continuous monitoring for threats and vulnerabilities. The company will use investment proceeds to grow the Claroty brand globally, extend its sales and customer support, and invest in product innovation.