Cybersecurity startup SCADAfence raises $12 million to boost growth

Funding in the company, a developer of solutions for critical infrastructures and manufacturing plants, is led by JVP and includes new strategic investment from US firm Rapid7

Shoshanna Solomon is The Times of Israel's Startups and Business reporter

The SCADAfence team, March 2021 (Courtesy)
The SCADAfence team, March 2021 (Courtesy)

SCADAfence, a developer of cybersecurity solutions for the critical infrastructure and manufacturing industries, said Monday it has secured $12 million in funding to boost growth and provide a greater variety of products.

The round was led by existing investor JVP and includes strategic investor Rapid7, a US-based cybersecurity firm, and other existing shareholders.

The new investment will help SCADAfence further expand its global customer base across a diverse set of industries, including manufacturing, water treatment, critical infrastructure, oil & gas, pharmaceuticals, chemicals, and building management systems (BMS), the company said in a statement. The company’s existing customers include Honda, Japan’s electronic components maker Murata Manufacturing, Turkish appliances maker Vestel, Japan’s real estate developer Mitsui Fudosan, Israel’s Taro Pharmaceuticals, and other Fortune 500 companies in the US, the statement added.

The funding will also enable the company to expand its product portfolio to cater for the changing threat landscape and “to meet the cybersecurity needs of manufacturing and critical infrastructure at all levels, no matter the size or complexity of the organization,” the statement said.

“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,” said Shai Schiller, JVP general partner in the statement.

The entry of Rapid7 as a strategic investor will help SCADAfence expand its US operations, he said, as the US firm will expose the Tel Aviv-based startup “to a substantial salesforce, dozens of channels and thousands of strategic customers.”

Gartner’s Research shows that the increasingly complex and interconnected nature of today’s operational technology networks used in critical infrastructures in the fields of energy, water supply, transportation and other operations, has made them more vulnerable than ever to malicious players who are interested in compromising them for political and economic purposes.

“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 operation technology (OT) environments,” said Conan Reidy, senior vice president of corporate development and technology alliances at Rapid7.

Elad Ben-Meir, CEO of SCADAfence, said the firm experienced “exponential growth” in 2020 despite the pandemic.

“We managed to triple our revenues and the number of our customers,” he said in the statement. “We also won 11 industry awards – more than any other company in the industrial cybersecurity space – including recognition from Gartner as a Cool Vendor.”

Founded in 2014 by Ofer Shaked, the firm had raised to date $10 million from investors. The company employs 40 people, 27 of them in Israel.

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