Tel Aviv-based Israeli IoT cybersecurity company SCADAfence that provides cybersecurity systems for industrial operational technology (OT) networks, has just closed a $10 million Series A financing round.
Investors include 31Ventures Global Innovation Fund, NexStar Partners, Jerusalem Venture Partners (JVP), iAngels, GB-VI Growth Fund Investment Limited Partnership managed by Global Brain, and DS Strategic Partners. The startup will use the investment to expand its global business development teams as well as R&D center in Tel Aviv to meet increasing market demand across North America, Asia and Europe.
SCADAfence is part of the Industry 4.0 revolution or Industrial IoT as it provides industrial OT networks with cybersecurity systems. This is allows the networks to become increasingly linked to external networks, making them easier to manage, more industrious, and more lucrative. While the IoT industry is on the up and up, cybersecurity risks can generate theft of intellectual property, process manipulation, ransomware attacks, and operational downtime.
Producers from various industries have reported hundreds of millions of dollars in profit losses due to standstills in manufacturing caused by ransomware attacks. Latest attacks, such as Petya and WannaCry, pinpoint how vulnerable OT networks are and that cyber-attacks are considerably affecting industrial enterprises’ bottom line of industrial companies.
SCADAfence cofounder and CEO Yoni Shohet explained that “the diversity of our investors, from the US, Japan and Israel, as well as our global customer base, is an indicator of the widespread recognition of the problem that industrial companies face today in terms of cyber threats. OT networks were not designed with cybersecurity in mind, yet now cyberattacks have become an imminent threat and companies cannot stand to risk exposing these environments, which is where we come in.”
According to SCADAfence cofounder and CTO Ofer Shaked: “Most IT security solutions are inadequate for securing industrial networks, and the risk they pose on the operational process usually outweighs their security benefits. SCADAfence provides a passive and continuous monitoring solution that is guaranteed not to add any additional risks making it very easy for companies to improve their security posture.”
nvestor Yoav Tzruya, JVP General Partner, commented that “SCADAfence uniquely provides real-time detection, complete visibility and asset management. Simply using IT security solutions in OT isn’t effective, which is exactly why we see a lot of value in SCADAfence’s technology. SCADAfence’s solutions’ unprecedented ability to scale, achieve high detection rates while providing industry-leading user experience and low total cost of ownership, make them the only product that fits the requirements of large industrial networks.”
SCADAfence’s customers include Global Fortune 500 companies in the chemical, automotive, energy, chemical, and pharmaceutical sectors. Its solution enables operators and proprietors to bridge the cybersecurity gap that comes with connecting OT and IT networks to ensure operative stability of those networks and secure valuable assets.