The Funding Round, Led By JVP, is also Joined by Rapid7. Over the Last Year, SCADAfence Tripled both its Revenues and its Customer Base
New York, NY / Tel Aviv, Israel – March 17, 2021 – SCADAfence, the global leader in cybersecurity for Operational Technology (OT) & Internet of Things (IoT) environments, announced that it has secured $12 million in funding aimed at accelerating growth. The round, led by existing investor JVP, also includes strategic investor Rapid7 and the participation of other existing shareholders. The new funding will help SCADAfence further accelerate its expanding global customer base across a diverse set of industries – including manufacturing, water treatment, critical infrastructure, oil & gas, pharmaceuticals, chemicals, and building management systems (BMS). Some of the company’s existing customers include Honda, Murata, Vestel, Mitsui Fudosan, Taro Pharmaceuticals, and numerous other Fortune 500 companies in the US.
In addition to facilitating the next stage of SCADAfence’s business growth, the funding will enable the company to continue to build its worldwide operations to meet the cybersecurity needs of manufacturing & critical infrastructure at all levels, no matter the size or complexity of the organization. The round will enable the company to continue innovating by strengthening its full suite of OT & IoT cybersecurity solutions, including the world’s first and only dedicated governance, risk management, and compliance (GRC) platform for industrial regulations. The effort to make OT/IoT-specific cybersecurity expertise and technology more accessible is a key element of the company’s overarching mission to keep civilians safe from industrial cyberattacks.
“I’m proud to be a part of this latest development in SCADAfence’s growth”, said Shai Schiller, JVP General Partner, “the company is a strong and significant player in the field of critical infrastructure protection and in securing industries such as automotive and other manufacturing enterprises. Attacks on Operation Technology (OT) networks endanger countries and civilians alike, as they pose the soft underbelly for all critical infrastructure in the fields of energy, water supply, transportation and all aspects of our daily operations and basic necessities. The company plans to significantly expand its US operations following the entry of Rapid7 as a strategic investor and partner. Rapid7’s partnership exposes SCADAfence to a substantial salesforce, dozens of channels and thousands of strategic customers. Aside from the go to market expansion, the company is also expanding its product portfolio offering to cater for the ever-changing threat landscape and in essence offering the broadest set of security products in its competitive landscape”.
“Cyber risks to industrial control systems are rapidly increasing, as is the market demand for holistic, risk-based solutions that provide visibility across IT and OT environments,” said Conan Reidy, Senior Vice President of Corporate Development and Technology Alliances at Rapid7. “Our strategic investment in SCADAfence further solidifies our commitment to this growing market and we look forward to working with the SCADAfence team to bring OT & IoT cybersecurity capabilities to a broader customer base.”
“This investment comes at a very opportune time for our industry as the demand for OT & IoT security is at an all-time high. SCADAfence is an organization in hyper-growth mode,” said Elad Ben-Meir, CEO of SCADAfence. “SCADAfence has experienced exponential growth in 2020, despite the pandemic. We managed to triple our revenues and the number of our customers. We also won 11 industry awards – more than any other company in the industrial cybersecurity space – including recognition from Gartner as a Cool Vendor and recognition by ISG as an industry leader. Moreover, Rapid7, a global cyber security leader has identified SCADAfence as the best-of-breed OT & IoT security solution and we believe our strategic partnership will create an industry-leading value proposition.”
As part of SCADAfence’s rapid growth, the company has recruited several top-tier executives from leading cybersecurity organizations to grow their executive teams in sales engineering and revenue growth. Amongst them is Gordon Boyce, the former CEO of Forescout, who joins the executive team as SCADAfence’s CRO to facilitate the company’s rapid growth. SCADAfence is looking to add at least 20 additional new members to their global team in the near future.
SCADAfence is the global technology leader in OT & IoT cybersecurity. SCADAfence offers a full suite of industrial cybersecurity products that provides full coverage of large-scale networks, offering best-in-class network monitoring, asset discovery, governance, remote access, and IoT device security. A Gartner “Cool Vendor” in 2020, SCADAfence delivers proactive security and visibility to some of the world’s most complex OT networks, including the largest manufacturing facility in Europe. SCADAfence enables organizations in critical infrastructure, manufacturing, and building management industries to operate securely, reliably, and efficiently. To learn more, visit our website, check out our blog, or follow us on LinkedIn.
JVP was founded in 1993 by Dr. Erel Margalit, is an internationally renowned VC fund. Among the pioneering firms of the Israeli VC industry, JVP has been instrumental in building some of the world’s largest companies to emerge, facilitating numerous IPOs on NASDAQ, including CyberArk Software (NASDAQ: CYBR, $4.7 billion mkt. cap.), QLIK Technologies (NASDAQ: QLIK, then $4 billion mkt. cap.) and Cogent Communications (NASDAQ: CCOI, $3 billion mkt. cap.) as well as many large industry sales. Over the past decade JVP has spearheaded the creation of international Centers of Excellence, including the AI and Media center in Jerusalem, the Cyber center in Beer Sheva, the Foodtech and Agritech center in the Galilee, the International Cyber and FinTech center in NYC, in partnership with NYC/EDC and the leading universities of the city. Recently JVP has decided to open a newly emerging center in the UAE that will be a new chapter for Israeli technologies to engage with the region. For more information on JVP, visit jvpvc.com, or follow us on Twitter: @JerusalemVenturePartners.
About Rapid 7
Rapid7 (Nasdaq: RPD) is advancing security with visibility, analytics, and automation delivered through our Insight cloud. Our solutions simplify the complex, allowing security teams to work more effectively with IT and development to reduce vulnerabilities, monitor for malicious behavior, investigate and shut down attacks, and automate routine tasks. Over 9,300 customers rely on Rapid7 technology, services, and research to improve security outcomes and securely advance their organization. For more information, visit our website, check out our blog, or follow us on LinkedIn.
Additional Information for Journalists
Gartner’s Research reports that the increasingly complex and interconnected nature of today’s operational technology networks – combined with threat actors’ interest in compromising them for political and economic purposes, has made these networks more vulnerable than ever. As IT & OT technologies converge, security and risk managers have to work together to counter increases in vulnerabilities to ensure business continuity and resilience. IT & OT departments also must define industrial compliance & enforcement policies and continuously monitor their compliance enforcement status for various ICS standards, frameworks, and regulations.
Furthermore, industrial organizations have been forced to accept the cybersecurity risks of remote operations on an accelerated timeline and move quickly to close the gap left by legacy risk management approaches. This has resulted in an exponential increase in expanded threat surface with increased vulnerabilities and new attacker methods, translating to more opportunities for cyber threat actors. Gaining visibility into OT networks is not only critical for understanding where security risks may exist, but it is also a fundamental step to secure smart manufacturing and smart grids across production facilities and the supply chain.
SCADAfence offers a full suite of industrial cybersecurity products that provides full coverage of large-scale networks, offering best-in-class network monitoring, asset discovery, governance, remote access, and IoT device security.