Industrial cybersecurity firm Claroty has raised $400 million in a Series E funding round, co-led by Japanese investment firm SoftBank, the Israeli firm announced on Wednesday.
SoftBank Vision Fund 2 was joined by existing investors Bessemer Venture Partners and Schneider Electric. Other existing investors, including ISTARI (a global cybersecurity platform established by Temasek), Team8, and Standard Investments, participated as well. Additionally,
In July, ex-Mossad chief Yossi Cohen was tapped to become head of SoftBank’s investment activities in Israel. Cohen will join Claroty’s board of directors.
“As digital transformation initiatives drive the essential physical systems that we rely on for even the most basic human needs, securing these systems is ultimately about mitigating risks to human life,” said Cohen in a statement. “Claroty’s technology addresses a high-stakes problem in enabling safe digital transformation, and we are eager to partner with the team in its journey to protect the critical infrastructure that is the foundation of the AI revolution.”
The round brings the company’s total funding to $635 million, which the company said makes it “the most well-funded cybersecurity company in the industrial (OT), healthcare (IoMT), and enterprise IoT sectors.”
Claroty has also entered an agreement to acquire healthcare IoT security company Medigate, a company that secures connected medical devices.
“While connectivity between the cyber and physical systems in manufacturing, healthcare, energy, and other industries is driving significant competitive advantages via increased operational agility and resilience, it also creates greater exposure to risks with serious consequences for patient safety, public safety, and the environment,” said Yaniv Vardi, CEO of Claroty. “By combining Claroty and Medigate’s deep domain expertise and specialized technologies into a single platform, we will take a giant leap forward on our mission to secure the ever-expanding universe of XIoT for every connected organization. We envision a future where cyber and physical worlds safely connect to support our lives, and with such strong backing from some of the world’s foremost technology investors, we have the resources we need to make this vision a reality.”
Founded in 2014, Claroty develops software to secure the safety and reliability of industrial control networks. The Tel Aviv-based company is considered to be one of the leading industrial cybersecurity platforms to drive visibility, continuity, and resiliency in the industrial economy.