iTWire - Claroty secures $100 million in strategic growth financing

Thursday, 07 March 2024 10:51

Claroty secures $100 million in strategic growth financing Featured

By Gordon Peters

Cyber-physical systems protection company Claroty has secured $100 million in strategic growth financing.

Claroty says the funds will contribute to accelerated vertical and regional expansion, product innovation, and strategic partnerships.

Participants in the financing include lead equity investor Delta-v Capital, as well as AB Private Credit Investors at AllianceBernstein, Standard Investments, Toshiba Digital Solutions, SE Ventures, Rockwell Automation, and Silicon Valley Bank, a division of First Citizens Bank.

“Combined with Claroty’s existing $635 million in funding to date, this new financing further establishes the company’s leadership position in the critical infrastructure cybersecurity market,” notes Claroty.

“The funds will be used to scale Claroty’s platform approach to cyber-physical systems (CPS) protection across key verticals including the public sector and heavily regulated critical infrastructure industries, expand in emerging regions across the Americas, EMEA, and Asia-Pacific, fuel research and development for core and adjacent technologies including secure remote access, and double down on new and existing strategic partnerships.”

“The past year has brought unprecedented geopolitical, macroeconomic, and regulatory changes that have created new trends and challenges for those charged with protecting the world’s critical infrastructure,” said Yaniv Vardi, CEO of Claroty. “With our deep domain expertise, unmatched technological capabilities in our comprehensive platform, and extensive partner ecosystem, Claroty is uniquely equipped to help CPS defenders navigate these changes. This new investment reinforces our leadership position in the CPS security market and propels us forward on our journey to ensure the cyber and physical worlds can safely connect to drive progress, improve productivity, and support our lives.”

Claroty notes that the financing comes shortly after a “momentous year” for the company, which now works with 20% of the Fortune 100, and recent growth milestones and industry accolades include:
Revenue: Surpassed $100 million in annual recurring revenue (ARR) during 2023
Customers: Achieved over 300% growth in number of customers since 2020
Partners: Established strategic technology alliances with industry leaders such as CrowdStrike, ServiceNow, and AWS; added several Managed Security Service Providers (MSSPs) including IBM, Rockwell Automation, Schneider Electric, NTT Data, and eSentire to its FOCUS Partner Program
Product Innovation: Enhanced its SaaS offerings with new vulnerability and risk management (VRM) capabilities, further empowering security teams to evaluate and strengthen their organisation’s CPS risk posture
Threat Research: Team82, Claroty’s award-winning research team, has discovered and disclosed over 550 CPS vulnerabilities to date
Analyst Recognition: Named a leader or relevant vendor in numerous industry analyst reports, including:

KLAS Research, Best in KLAS for Healthcare IoT Security, four years in a row
Everest Group, Operational Technology (OT) Security Products PEAK Matrix® Assessment 2023 – Leader
Westlands Advisory, 2023 IT/OT Network Protection Platforms Navigator™ – Leader
Quadrant Knowledge Solutions, SPARK Matrix™: Operational Technology (OT) Security Q4 2023 – Leader
Quadrant Knowledge Solutions, SPARK Matrix™: Connected Medical Device Security Solution, Q4 2023 – Leader
Gartner®, 2023 Market Guide for CPS Protection Platforms – Representative Vendor[1]

Forrester, The Operational Technology Security Solutions Landscape, Q1 2024 – Notable Vendor
Awards: Named to the Deloitte Technology Fast 500 for three years in a row, the Forbes Cloud 100 for two years in a row, and the inaugural Fortune Cyber 60
Leadership: Added considerable talent to its leadership team with the appointments of Derek Phillips as Chief Revenue Officer, Shira Bar Yosef (Weizman) as its first-ever Chief Customer Officer, and former U.S. National Cyber Director Chris Inglis and Amtrak CISO Jesse Whaley as advisory board members

“The lines between the digital and physical worlds are blurring, which means that cyber attacks and incidents are having more physical, real-world impacts such as power outages, fuel shortages, and disruptions to medical care,” said Dan Williams, Partner at Delta-v Capital. “Claroty has demonstrated a unique ability to address critical infrastructure organisations’ most pressing security needs, and we believe its platform approach to CPS protection is strongly aligned with where the market is headed for years to come. We are excited to join such an important mission and look forward to supporting Claroty’s continued growth and success.”

“As our world becomes more digitally connected, cybersecurity becomes an increasingly urgent priority, especially when critical infrastructure is involved,” said Lewis Leavitt, Director at AB Private Credit Investors.

“Claroty has proven that its talented leadership team, advanced technology, and go-to-market strategy comprise the key ingredients for long-term growth, and we are delighted to come aboard at such an exciting time in the company’s journey,” said Alex Barry, Managing Director at AB Private Credit Investors.

“The New York Corporate Banking team is excited to support Claroty with this new strategic growth financing,” said Sameer Paul, Director of Silicon Valley Bank. “We have witnessed the company’s impressive success and strong growth while providing critical needs for the cybersecurity market. The Claroty team shows true professionalism and are the type of strong operators SVB loves to support. We look forward to partnering with the company as they continue to grow and scale.”

1] Gartner, Market Guide for CPS Protection Platforms, 29 June 2023, Katell Thielemann, Wam Voster

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