Armis, a Palo Alto, California-based agentless enterprise IoT security company, announced it has raised $65 million in Series C funding led by Sequoia Capital. Insight Venture Partners and Intermountain Ventures also participated in this round along with Bain Capital Ventures, Red Dot Capital Partners, and Tenaya Capital. Including this funding round, Armis has raised $112 million. In conjunction with this funding round, Sequoia partner Carl Eschenbach is joining the Armis board.
“IoT security has come of age, with CIOs and CISOs across industries prioritizing it as they realize the significant risk these connected devices pose,” said Yevgeny Dibrov, CEO and co-founder of Armis. “Our platform is purpose-built to address these new insecure endpoints, what we call ‘un-agentable’ devices. But beyond the technology, it’s how we partner closely with our customers to secure this new attack landscape.”
One of the biggest problems with the connected enterprise is that it represents an expanding attack surface. And recent reports on ransomware attacks impact global corporations often times through insecure and unmanaged devices. Gartner estimates that IoT endpoints are going to grow to 25 billion units by 2021 — which is the highest growth in the cross-industry category.
“Armis offers companies unprecedented visibility across managed and unmanaged devices during a time when the number of IoT devices is exploding. As every industry and market segment faces the issue of identifying and securing these devices, Armis is providing the best solution with their easy to install, agent-less platform. This, along with their incredible team and company culture, is why we’ve partnered with the company since the Series A in Israel and are thrilled to be part of this next phase of growth,” added Eschenbach.
“The IoT security marketplace is growing at an incredible rate,” said Jeff Horing, Managing Director at Insight Venture Partners. “Armis executed extremely well early on, and has built the platform and approach we believe in to address $30 billion dollar market.”
Founded by Dibrov, Nadir Izrael, and Tomer Schwartz, Armis leverages insights from its cloud-based Device Knowledgebase. The Device Knowledgebase monitors more than 80 million devices worldwide. And it delivers comprehensive visibility of every device across an enterprise environment. And it analyzes and classifies devices and behaviors in order to identify risks or attacks. Plus it protects critical information and systems.
“As the first to partner with Armis, I saw the huge pain point they address and the leadership of Yevgeny and Nadir as a winning combination,” explained Armis Chairman Gili Raanan. “With their solid technology and customer deployments across 165 countries, Armis has become the defacto IoT security standard for hospitals, manufacturing, retail, tech, finance & banking industries.”
Armis is going to use this funding round for accelerating investments in sales, marketing, and engineering. And it will be expanding the only effective cross-industry solution built for addressing the security exposures of Enterprise IoT devices.
“We’re entering an age of digital healthcare with a generation of medical devices designed to connect that have no security built into them,” Nadir Izrael, CTO & Co-Founder. “I speak with healthcare companies regularly, and I’ve seen the ways that connected devices in hospitals are being targeted by malicious actors or exposed — MRI machines talking to servers in Russia, a medical crash cart being used to access Facebook or phishing websites, and even patient data being sent unencrypted.”
Over the past year, Armis saw 700% growth in annual revenue. And the company signed multiple multimillion-dollar contracts with enterprises with deployments in more than 25% of the Fortune 100. Some of the company’s customers include Mondelēz, Sysco Foods, Allergan, and Samsung Research America.