Claroty, a New York-based leader in industrial cybersecurity, has secured a monumental $100 million funding injection. This strategic move strengthens their position as a champion in protecting critical infrastructure, paving the way for potential future dominance in the market.
Claroty specializes in fortifying "operational technology" (OT) systems – the digital backbone controlling physical processes like manufacturing lines and water treatment plants. Unlike traditional IT security software, Claroty's solutions address the unique vulnerabilities of these industrial control systems.
While facing established players like Dragos, Tenable, and Secureworks, Claroty leverages a distinct platform approach. They offer a comprehensive suite of tools encompassing network defense, threat detection, and other vital functionalities. This strategy aligns perfectly with the industry's growing demand for consolidated solutions that streamline security management and foster seamless integration between tools from different vendors.
Claroty's CEO, Yaniv Vardi, emphasizes the crucial shift in customer preference. "Our clients are tired of fragmented niche solutions," he states. "They desire a one-stop shop that fulfills their comprehensive security needs." This funding propels Claroty's growth strategy, enabling them to expand geographically and reach new industry sectors, ultimately catering to this evolving customer demand.
Leading the funding round is growth equity firm Delta-v Capital, joined by a powerful consortium of investors. Renowned names like AllianceBernstein, Toshiba, Rockwell Automation, and Silicon Valley Bank, along with venture-capital firms Standard Investments and SE Ventures, stand behind Claroty's vision.
This investment reflects the heightened awareness of OT security threats. Dan Williams, a partner at Delta-v Capital, highlights the potential impact: "These aren't just cyberattacks – they affect humanity. We're talking about disruptions to energy, water, and essential infrastructure." Claroty's rise couldn't be more timely, addressing critical security gaps with a comprehensive approach.
Claroty's total funding now surpasses $700 million, with a portion allocated as a credit line for future endeavors. While an initial public offering (IPO) is a definite possibility, Vardi emphasizes the importance of strategic alignment. The company prioritizes market expansion before pursuing an IPO, ensuring optimal market conditions and alignment with their growth objectives.
This $100 million injection marks a pivotal moment for Claroty. It fuels their ambition to become the undisputed leader in industrial cybersecurity, ensuring the safe and reliable operation of critical infrastructure that forms the bedrock of our modern world. With a robust platform approach and an unwavering commitment to customer needs, Claroty is well-positioned to secure the industrial landscape against evolving cyber threats.
