Claroty, an NYC-based cybersecurity startup that helps companies manage their Internet of Things and operational technology assets, announced Thursday it closed on a $140 million in fresh funding. The round was co-led by Bessemer Venture Partners’ Century II fund and 40 North.
Founded in 2015, Claroty focuses on the industrial side of cybersecurity, helping major global brands like Coca-Cola and General Motors protect their assets, connections and processes across all their locations and facilities from being hacked. Right now the company is also working with pharmaceutical giant Pfizer to secure its Covid-19 vaccine supply chain.
“Our mission is to drive visibility, continuity and resilience in the industrial economy by delivering the most comprehensive solutions that secure all connected devices within the four walls of an industrial site,” CEO Yaniv Vardi said in a statement, adding that this fresh funding will give the company the “financial runway” to expand in this “hyper-growth market.”
Indeed, cyber attacks on large companies have become much more frequent and damaging, with some experts projecting that global ransomware damage will exceed $265 billion in the next 10 years — a massive increase from the $20 billion projected this year. Amid all this, companies like Claroty have been experiencing a surge in demand. The company says it expects new annual recurring revenue to grow by more than 130 percent this year, and it is on track to grow its headcount by 50 percent by the end of the year.
Looking ahead, Claroty says it will use this fresh funding to keep up the momentum, with plans to expand into new regions and verticals, as well as increase global headcount. The company currently employs about 240 people and has dozens of open tech positions across its offices.
This Series D brings Claroty’s total funding raised to $235 million, and is reportedly the largest investment in industrial cybersecurity to date. It is also Claroty’s largest funding round to date, and may just be its last since the company is considering a public debut soon, according to TechCrunch.