Israeli cybersecurity startup Zero Networks Ltd. announced today that it has raised $55 million in new funding to expand its team and scale up go-to-market efforts worldwide.

Founded in 2019, Zero Networks offers automated, agentless microsegmentation solutions that prevent lateral movement and block ransomware attacks. The company’s platform simplifies the implementation of zero-trust security by dynamically learning network behavior and enforcing least-privilege access controls without the need for manual configurations or additional agents.

As noted when it previously raised funding in December 2023, Zero Networks argues that existing segmentation solutions designed to address the problem are complex and labor-intensive and do not provide comprehensive protection. By comparison, the company offers a software-as-a-service solution that learns network traffic and creates security policies that restrict user and machine access to only necessary assets. The platform also deploys multifactor authentication for access to sensitive protocols to stop hackers from moving laterally through an organization.

Microsegmentation is core to the company’s offering. The platform creates secure micro-perimeters around every device on a network, including operational technology and internet of things devices. The platform ensures that only necessary network permissions are maintained by monitoring network traffic and applying deterministic rule creation, thereby reducing the risk of unauthorized access.

Zero Networks also offers identity segmentation, which restricts admin and service account access strictly to operational needs. The approach prevents privileged account abuse by enforcing multifactor authentication and just-in-time access, to enhance an organization’s security posture against credential-based attacks.

The company has seen strong growth, tripling its customer base since last raising funding and seeing revenue growth of over 300%. Notable customers include Evercore Inc., Vermeer Corp., B Riley Financial Inc., MIO Partners Inc., Greenhill & Co. Inc. and Baron Capital Group Inc.

The Series C round was led by Highland Europe Ltd., with existing investors F2 Venture Capital, PICO Venture Partners LP, Venrock Associates and U.S. Venture Partners LP also participating.

“Microsegmentation has long been the crown jewel of network defense; praised for its effectiveness but abandoned because of its complexity,” said co-founder and Chief Executive Benny Lakunishok. “This funding raise validates everything we’ve claimed since day one: that we can make segmentation simple, scalable and powerful enough to contain ransomware and stop lateral movement at its source.”

The new funding takes the total raised by Zero Networks to more than $100 million. As part of the new funding deal, Jacob Bernstein, principal at Highland Europe, will join the company’s board of directors.

Photo: Zero Networks