Israeli cybersecurity company SCADAfence has raised $10 million in a Series A round from several investors: JVP, NexStar Partners, 31Ventures Global Innovation Fund, GB-VI Growth Fund Investment Limited Partnership, iAngels, and DS Strategic Partners.
The company creates cybersecurity tools for securing SCADA (supervisory control and data acquisition) industrial networks and critical infrastructure, with real-time detection, in sectors like manufacturing, pharmaceuticals, and automotive. These networks were not originally designed with security in mind, according to the company.
The funds will be used to grow the company's Tel-Aviv-based R&D centre and expand its business operations in Europe, North America, and Asia.
With the shift towards greater connectivity with industrial scale IoT solutions and Industry 4.0, the cybersecurity threat looms higher than ever, whether it's process disruption, ransomware, or IP theft. This year, major industrial firms reported significant damage to their bottom lines stemming from ransomware attacks, such as shipping giant Maersk, which claimed it incurred $300 million in losses from cyber-attacks.
“Most IT security solutions are inadequate for securing industrial networks, and the risk they pose on the operational process usually outweighs their security benefits,” commented Ofer Shaked, CTO of the company. “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.”