Tel Aviv-based industrial cybersecurity startup Indegy said Tuesday it has closed an $18 million Series B round of financing that will help it expand its marketing reach to cater for a “spike of interest” in cybersecurity protection.
The funding round was led by Liberty Technology Venture Capital, a subsidiary of Liberty Media with participation from international energy and services firm Centrica plc, O.G. Tech Ventures and existing investors Shlomo Kramer, Magma Venture Partners, Vertex Ventures and Aspect Ventures, the company said in a statement.
The funding round brings the total amount of money raised to date by the startup to $36 million, according to data compiled by Start-Up Nation Central.
Indegy has developed software that provides real-time monitoring of control systems that are used in critical infrastructures, such as energy and water utilities and manufacturing facilities, helping protect against cyber-attacks, malicious insiders and operational mistakes.
In a non-intrusive way, the software can detect anomalies on industrial control systems, using advanced machine-learning technology to analyze and alert users to suspicious activity on their network.
Indegy also said Tuesday that it has appointed two new executives to its management team: Joe Scotto from BAE Systems, who joins as chief marketing officer and Todd Warwick from Imperva, who will take over as vice president of Sales, Americas.
Recent reports by the US Department of Homeland Security and the FBI regarding attacks against critical infrastructures “have created a greater sense of urgency among industrial organizations to shore up their defenses, and produced a major spike in new business for Indegy,” said Barak Perelman, CEO of Indegy. “This capital infusion provides the financial resources required to scale up the company and capitalize on this market opportunity.”
The investment from Centrica was made by the company’s innovations arm, established last year to identify and accelerate new technology and ideas for homes and businesses. Centrica Plc supplies energy and services to over 25 million customer accounts mainly in the UK, Ireland and North America through its brands such as British Gas, Direct Energy and Bord Gáis Energy.
“With a growing customer portfolio that spans 35 countries, we’re working to bring businesses world-leading energy management solutions that will allow customers to take greater control of their energy,” said Christophe Defert, VP Ventures for Centrica Innovations. “In an increasingly connected world, we’re looking forward to working with Indegy as we explore ways to deploy distributed energy resources with the optimal security solution.”
Centrica Innovations set up a £100 million ($129 million) fund in 2017 to scout for technologies, including Israeli tech, that can help expand the scope of products and services it provides customers. The tech push comes as the owner of British Gas faces growing competition in the industry and is witnessing a transition of consumers to online services.
Indegy’s software protects industrial control system (ICS) networks from cyber-threats, malicious insiders and human error by providing visibility and control. Its suite of products is already used by manufacturing, pharmaceutical, energy, water and other industrial organizations around the world.
In 2016, the cybersecurity startup topped a ranking made by New York data company CB Insights of Israeli early-stage business-to-business software companies to watch.