PALO ALTO — Indegy, the industrial cyber security company, has closed a $12 million Series A round of financing led by Vertex Ventures Israel with participation from Silicon Valley-based Aspect Ventures, SBI Holdings of Japan as well as previous investors Shlomo Kramer and Magma Venture Partners.
The company has raised $18 million to date to market its cyber security technology that protects industrial control systems (ICS) used in the energy, water utility, petrochemical, pharmaceutical and manufacturing sectors, from cyber threats.
The funds will be used to scale Indegy’s sales and marketing operations in North America, Europe and Asia, as well as R&D in Israel. As part of the financing, Aviad Ariel of Vertex Ventures will be joining Indegy’s Board of Directors. Theresia Gouw, co-founder and managing partner of Aspect Ventures backed her firm’s investment in the company.
According to a recent report by accounting and consulting firm BDO USA, 9 of 10 (92 percent) manufacturers surveyed cited cyber security concerns in their U.S. Securities and Exchange Commission (SEC) disclosures in 2016. Indegy’s platform can discover changes to devices used to operate industrial processes and equipment that may indicate an attack, before damage can be done. Unlike IT security products designed for use in enterprise networks, Indegy’s platform is purpose built for protecting ICS environments.
“Raising our Series A round with investors in both Israel and Silicon Valley provides strong validation for our technology and business, especially in a climate where many security start-ups are struggling to get funded,” said Barak Perelman, CEO of Indegy. “This new round of financing will provide the working capital we need to scale our resources to meet accelerating customer demand in a rapidly growing market.”