Network monitoring security provider, Claroty, picked up $60 million in investment capital in a Series B funding offering, which included industrial operators and control system vendors, bringing the company’s total investment to date at $93 million.
The round was led by Temasek and included Rockwell Automation, Aster Capital (sponsored by Schneider Electric), Next47 (Siemens-backed global venture firm), Envision Ventures, and Tekfen Ventures. Original Claroty investors Bessemer Venture Partners, Team8, Innovation Endeavors, and ICV all participated in the round.
Founded in 2014 and exiting stealth mode in late 2016, this investment comes after Claroty capped by a 300 percent year-over-year growth in bookings and customer base.
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, data centers, warehouses).
“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 Amir Zilberstein, Claroty co-founder and chief executive.
This cybersecurity market segment is the result of a “perfect storm” that has placed industrial networks running critical global infrastructures in the spotlight. Old and insecure industrial control networks, once thought to be “air-gapped,” are now rapidly connecting to networks and exposed to a range of risks. Because of their criticality, 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 costing companies billions in losses.
“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.
“Protecting the critical automation systems our customers operate against cyberattacks remains a top priority for the company,” said Frank Kulaszewicz, SVP, Architecture & Software at Rockwell Automation. “Claroty has been a partner since 2016 and their advanced technology is a key element of our real-time threat detection and monitoring service. Our investment in Claroty is a logical extension of our ongoing strategic partnership.”
Claroty’s platform provides visibility into industrial networks and combines secure remote access with continuous monitoring for threats and vulnerabilities – enabling industrial control system operators to protect these networks.
Claroty will use investment proceeds to grow the Claroty brand globally, extend its sales and customer support footprint, and continue its rapid pace of product innovation.