Claroty has secured $140 million in its latest funding round as the demand for industrial and critical infrastructure cybersecurity grows.
The Series D round marks the largest investment ever made within the industrial cybersecurity sector, and brings the company's total funding to $235 million.
The round was co-led by Bessemer Venture Partners' Century II fund, which is specifically designed for growth-stage companies, and 40 North, the related investment arm of privately-held global industrial company Standard Industries.
Additional strategic investors include LG, the technology and manufacturing company, and I Squared Capital's ISQ Global InfraTech Fund.
All previous investors, including Team8 and long-time customers and partners Rockwell Automation, Siemens, and Schneider Electric, have also participated.
The company states it will use the funds to meet accelerating global demand for The Claroty Platform's visibility, threat detection, risk and vulnerability management.
It will also be used to secure remote access capabilities by expanding into new verticals and regions, growing global headcount, bolstering its commitment to securing IoT devices, and further empowering customers' journey to the cloud.
Spokespeople from top investors commented on the latest funding round.
Bessemer Venture Partners partner David Cowan says, “We launched Bessemer's growth fund to invest specifically in clear market leaders.
"We are focused on helping the next generation of category-defining companies that have standout product-market fit, scalability, and a strong executive team.
"Since our first investment in Claroty in 2016, the company has continued to demonstrate that it has the best vision, team, and technology to address the unique challenges in the critical infrastructure security sector.
40 North co-CEO and Standard Industries co-CEO David Millstone says, “David Winter and I are passionate about investing in high-potential companies, especially those focused on building the industrial future.
"Cybersecurity is a crucial component of that effort, and Claroty has proven itself as the most experienced, innovative, and visionary company in this industry. We look forward to working with its top-notch team to secure the new industrial revolution.
There has been a shift since 2020 in the frequency and impact of cyber attacks against organisations that underpin the world's critical infrastructure and supply chains. According to Cybersecurity Ventures, global ransomware damage costs are predicted to exceed $265 billion by 2031, up from $20 billion in 2021.
As these incidents show no signs of slowing, Claroty states the new investment will help the company to continue to work against threats and shore up industrial cyber defences for the future.
Claroty is already working to protect industrial assets, connections, and processes, with deployments in thousands of locations and facilities across all seven continents.
For example, the company has worked closely with Pfizer to secure its COVID-19 vaccine supply chain in its race to meet unprecedented global demand.
Claroty CEO Yaniv Vardi says, “Our mission is to drive visibility, continuity, and resiliency in the industrial economy by delivering the most comprehensive solutions that secure all connected devices within the four walls of an industrial site, including all operational technology, Internet of Things, and industrial IoT assets.
"With this new investment from the most prestigious firms in the world, we have the financial runway to execute on our proven product strategy in a hyper-growth market, with a world-class leadership team and a strong ecosystem of partners to take us there.