- Claroty recently announced it raised $400 million in Series E funding. These are the details.
Claroty recently announced the next step forward in its mission to secure cyber-physical systems (CPS) across industrial, healthcare, and enterprise environments – the Extended Internet of Things (XIoT) – by raising $400 million in Series E funding and entering an agreement to buy Medigate, a leading healthcare IoT security company. This funding round brings the company’s total funding to $635 million, making it the most well-funded cybersecurity company in the industrial (OT), healthcare (IoMT), and enterprise IoT sectors.
The Series E funding round was co-led by new investor SoftBank Vision Fund 2, as well as existing investors Bessemer Venture Partners and Schneider Electric. And other existing investors, including ISTARI (a global cybersecurity platform established by Temasek), Team8, and Standard Investments, participated as well. Additionally, Yossi Cohen, head of SoftBank’s investment activities in Israel, will join Claroty’s board of directors.
KEY QUOTE:
“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. 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.”
— Yaniv Vardi, CEO of Claroty
“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. 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.”
— Yossi Cohen of SoftBank Investment Advisers
“The real threat to society is not the Skynet AI, but human hackers turning our machines against us. We see this happening in hospitals, factories, electric and water utilities, transportation, building controls, and oil rigs. Bessemer helped get Claroty started in 2016 to restore trust in the world’s physical plant – the new frontier for cyber defense; and now we believe the company’s recognition by Forrester as a Leader in industrial control systems (ICS) security confirms our conviction in its capabilities, traction, and leadership.”
— Bessemer partner and Claroty board member David Cowan
“We built the industry’s first dedicated healthcare IoT security platform, which was named 2021 Best in KLAS for Healthcare IoT Security in the KLAS Software & Services Report, to empower healthcare providers to deliver secure, connected care. Becoming a part of Claroty means our customers will not only continue to receive the best security for their healthcare IoT devices, but will also gain coverage for the wide array of industrial IoT assets in their networks, without having to stitch together disparate tools for each.”
— Jonathan Langer, co-founder and CEO of Medigate
“As the world continues to rapidly digitize, cybersecurity is becoming a top priority for most organizations. We are pleased to be part of this funding round and continue our partnership with Claroty, who has developed the leading industrial cybersecurity platform to protect and manage OT, IoT, and IIoT assets, and is now extending that expertise into healthcare to protect the XIoT.”
— Heriberto Diarte, CEO of SE Ventures, Schneider Electric’s investment arm
