Key Takeaways
- Claroty, a cyber-physical systems (CPS) protection company, has secured $150 million in Series F funding led by Golub Growth.
- The funding will fuel global expansion through both organic and inorganic growth, as the company continues to build the industry’s most comprehensive CPS protection platform.
- The CPS protection market is rapidly maturing and evolving due to growing awareness of cyber attacks targeting critical infrastructure.
- Claroty is uniquely positioned to help organizations achieve holistic CPS protection outcomes, leveraging the right combination of technology, people, and processes.
- The company has reported an 80% increase in valuation since its previous financing round and is now working with 24 Fortune 100 organizations.
Introduction to Claroty’s Funding
Claroty, a leading cyber-physical systems (CPS) protection company, has announced that it has secured $150 million in Series F funding led by Golub Growth, an affiliate of Golub Capital. This new investment will fuel the company’s global expansion through both organic and inorganic growth, as it continues to pursue an aggressive vision for building the industry’s most comprehensive CPS protection platform. The funding is a significant milestone for Claroty, and it will enable the company to further develop its technology and expand its reach in the rapidly growing CPS protection market.
The Growing Need for CPS Protection
The growing awareness about the alarming reality of cyber attacks targeting critical infrastructure has led the CPS protection market to rapidly mature and evolve in recent years. However, security leaders charged with protecting CPS still face a number of challenges, including unclear ownership between IT and OT teams, no maturity model or roadmap for measuring success or progress, insufficient skills and resources, and more. These challenges hinder their efforts and leave mission-critical operations dangerously exposed. As a result, there is a growing need for a platform approach that serves as the foundation of a holistic CPS protection program, leveraging the right combination of technology, people, and processes to reduce risk, maintain compliance, and preserve operational integrity.
Claroty’s Unique Positioning
According to Yaniv Vardi, CEO of Claroty, "Organizations need a platform approach that serves as the foundation of a holistic CPS protection program, leveraging the right combination of technology, people, and processes in order to reduce risk, maintain compliance, and preserve operational integrity." Claroty is uniquely positioned to help organizations achieve these outcomes, with the deepest knowledge of CPS operations and networks and the most advanced technology in the market. The company’s platform approach is designed to provide a comprehensive solution for CPS protection, and its technology is trusted by some of the world’s leading organizations.
Golub Growth’s Investment
Golub Growth is proud to partner with Claroty to help accelerate the growth of its proven solutions, which leverage unparalleled CPS domain expertise and a trusted platform to meaningfully reduce risk for customers. According to Rob Tuchscherer, Senior Managing Director at Golub Capital, "We’re excited to support the Claroty team as they scale to address the evolving needs of a dynamic and growing market." The investment by Golub Growth is a significant vote of confidence in Claroty’s technology and its potential for growth, and it will enable the company to further develop its platform and expand its reach in the CPS protection market.
The Evolving Threat Landscape
The emergence of CPS has led to a growing number of cyber attacks targeting physical assets, such as oil pipelines, water utilities, and meat packers. These attacks are particularly prevalent in critical infrastructure sectors, given growing geopolitical risks and the direct nexus between critical infrastructure, national security, and economic prosperity. According to Gartner, "With the emergence of CPS, ransomware and other cyber attacks originating in the cyber world now affect physical assets, such as oil pipelines, water utilities or meat packers are also growing and well-documented." As a result, there is a growing need for effective CPS protection solutions that can help organizations reduce the risk of these types of attacks.
Claroty’s Growth and Innovation
The funding follows a landmark year for Claroty, marked by major growth milestones and industry recognition. The company reported an 80% increase in valuation since its previous financing round in March 2024 and is now working with 24 Fortune 100 organizations. On the product innovation front, Claroty welcomed former Ford Motor Co. AI Chief Gil Gur Arie as chief product officer and launched the CPS Library, a first-of-its-kind AI-powered asset catalog designed to enhance visibility and accuracy in tracking asset specifications, in partnership with Schneider Electric and Rockwell Automation. The company has also expanded its partner ecosystem by achieving the AWS Manufacturing and Industrial Competency for OT security and entering a new strategic collaboration with Google Security Operations.
Conclusion
In conclusion, Claroty’s $150 million Series F funding is a significant milestone for the company, and it will enable it to further develop its technology and expand its reach in the rapidly growing CPS protection market. The company’s unique positioning, with its deep knowledge of CPS operations and networks and its advanced technology, makes it an attractive partner for organizations looking to reduce the risk of cyber attacks targeting critical infrastructure. As the threat landscape continues to evolve, Claroty is well-positioned to help organizations achieve holistic CPS protection outcomes, and its growth and innovation will likely continue to accelerate in the coming years.
