Israel-based industrial cybersecurity provider SCADAfence has raised $10 million in Series A funding that will be used to expand its R&D center and expand business development across Asia, Europe and North America.
The company concentrates on security industrial operational technology (OT) networks. The company says that as the Industry 4.0 revolution progresses, networks OT networks are increasingly linked to external networks.
While this connection may be productive and cost-effective, it also exposes them to more security risks that can result in ransomware attacks, operational downtime, IP theft and process manipulation.
"Most IT security solutions are inadequate for securing industrial networks, and the risk they pose on the operational process usually outweighs their security benefits," comments SCADAfence CTO and co-founder Ofer Shaked.
The company has grown to include global Fortune 500 companies across industries including automotive, energy, chemical and pharmaceutical industries.
This Series A funding round included investors from JVP, NexStar Partners, 31Ventures Global Innovation Fund, GB-VI Growth Fund Investment Limited Partnership managed by Global Brain, iAngels and DS Strategic Partners.
"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," says JVP general partner Yoav Tzruya.
"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,” Tzruya continues.
According to SCADAfence CEO Yoni Shohet, investors hail from Japan, the US and Israel, in addition to its global customer base.
Shohet says this is an indicator of the widespread security issues that industrial and OT providers face today.
"OT networks were not designed with cybersecurity in mind, yet now cyber attacks have become an imminent threat and companies cannot stand to risk exposing these environments, which is where we come in,” Shohet explains.
Ransomware attacks such as NotPetya and WannaCry resulted in manufacturers’ losses of hundreds of millions of dollars in profits.
SCADAfence believes that the recent attacks demonstrate the vulnerability of OT networks and that they are already affecting the bottom line of industrial firms.
"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,” Shaked concludes.