Industrial cybersecurity startup SCADAfence reels in $10M from investors
Industrial companies are bringing more and more of their equipment into the “internet of things” in a bid to streamline operations. The payoff is the ability to perform tasks such as predict malfunctions ahead of time, but the increasingly connected nature of production lines is also creating new attack opportunities for hackers.
Tel Aviv-based SCADAfence Ltd. is tackling the threat. The startup, which today announced the completion of a $10 million funding round, sells cybersecurity tools specifically designed with industrial networks in mind. It claims to provide better protection than general-purpose breach prevention products, since they often don’t account for the unique characteristics of the Internet-connected hardware found in places such as factories.
SCADAfence’s main product is a monitoring platform that can automatically map out the devices in a network. From there, the software keeps an eye on each asset to find unusual behavior that may indicate a security breach.
Anomalous activity can take a variety of forms. In one highly publicized incident from 2015, for example, hackers breached the control systems at a German steel mill and caused an unscheduled shutdown of a blast furnace. The attack caused “massive” damage to the installation, according to a German government report.
In addition to security threats, SCADAfence said its software can also help companies identify configuration problems and malfunctions. These types of issues have the potential to cause just as big of a disruption to production as a cyberattack.
SCADAfence helps protect the industrial equipment of Fortune 500 companies in the automotive, pharmaceutical, chemical and energy sectors. The startup will use the capital to attract more clients, as well as step up product development.
The round saw the participation of NexStar Partners, Japanese venture capital giant Global Brain and several other institutional investors. SCADAfence is one of several emerging startups that have raised capital to make the industrial world more secure. Another is Indegy Inc., which offers a similar monitoring platform that attracted $12 million in funding last year.
Since you’re here …
Show your support for our mission by our 1-click subscribe to our YouTube Channel (below) — The more subscribers we have the more then YouTube’s algorithm promotes our content to users interested in #EnterpriseTech. Thank you.
Support Our Mission: >>>>>> SUBSCRIBE NOW >>>>>> to our Youtube Channel
… We’d like to tell you about our mission and how you can help us fulfill it. SiliconANGLE Media Inc.’s business model is based on the intrinsic value of the content, not advertising. Unlike many online publications, we don’t have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.The journalism, reporting and commentary on SiliconANGLE — along with live, unscripted video from our Silicon Valley studio and globe-trotting video teams at theCUBE — take a lot of hard work, time and money. Keeping the quality high requires the support of sponsors who are aligned with our vision of ad-free journalism content.