Industrial Cybersecurity: A Growing Concern
In a significant development for the industrial cybersecurity space, Dragos, a company building software to secure control systems for manufacturing and industrial equipment, has raised $74 million in a Series D round extension led by WestCap. This latest funding brings Dragos’ total raised to $440 million, maintaining its post-money valuation at $1.7 billion.
Growing Demand for Industrial Cybersecurity
The growing demand for industrial cybersecurity is driven by the increasing threat of cyberattacks on industrial control systems (ICS). According to Waterfall Security Solutions, a competitor to Dragos, there were 57 attacks on ICS in 2022, representing a 140% increase from the previous year. Furthermore, a recent survey by ABS Group revealed that 45% of organizations believe threats to their control systems are ‘high,’ while another 15% agree that they’re ‘severe or critical.’
The Global Market for Industrial Cybersecurity
Frost & Sullivan anticipates that the global market for industrial cybersecurity will reach $10.2 billion by 2025, up from $3.3 billion in 2020. This growth is driven by the increasing awareness of the importance of protecting ICS against cyber threats.
Dragos’ Mission to Secure Industrial Control Systems
Dragos was founded by Robert Lee, a former U.S. Air Force cyber warfare operations officer, along with Justin Cavinee and Jon Lavender. The company’s mission is to help asset owners and operators protect their infrastructure from threat actors targeting the hardware monitoring, managing, and controlling devices in industrial settings.
Dragos’ Platform
Dragos delivers visibility into an organization’s assets and communications, leveraging analytics to identify threats, prioritize vulnerabilities, and provide playbooks for responding to attacks. The company also offers a managed hunting service and a threat intelligence service for customers, allowing them to anonymously share threat intelligence with the broader community.
Expansion Plans
With its latest funding, Dragos plans to continue growing and expanding its customer base, which currently stands at around 400 organizations and governments. The company has been aggressively expanding over the past several months, entering new markets in Western Europe, the Middle East, and Asia, including a three-year deal with the Singaporean government’s cybersecurity arm.
Getting Its Partner Program Off the Ground
In addition to direct agreements and customer engagements, Dragos is putting efforts into getting its partner program off the ground. The Dragos Global Partner Program offers training to partners who resell, manage, and deploy its platform, including asset discovery and threat detection services.
The Future of Dragos
According to Robert Lee, CEO of Dragos, the company’s intention is to eventually go public through an initial public offering (IPO). While there is no timeline for this event, it seems that it’s just a matter of when.
Investors and Funding
WestCap led the Series D round extension, bringing Dragos’ total raised to $440 million. This latest funding will be used to continue growing and expanding its customer base, leveraging analytics to identify threats, prioritize vulnerabilities, and provide playbooks for responding to attacks.
Conclusion
The industrial cybersecurity space is a rapidly growing market driven by increasing awareness of the importance of protecting ICS against cyber threats. With its latest funding, Dragos is well-positioned to continue leading this market, expanding its customer base, and driving innovation in industrial cybersecurity.
