Key Takeaways
- Claroty, an Israeli cybersecurity unicorn, has raised $150 million in a Series F funding round to accelerate global expansion and build a comprehensive cybersecurity platform for critical infrastructure.
- The company’s valuation has increased by approximately 80% to an estimated $3 billion, with the funding including a secondary component of $30-40 million.
- Claroty expects to reach profitability in the near term and is considering an initial public offering, with the possibility of going public as early as next year.
- The company has grown by 300% in the past three years, reaching revenues in the hundreds of millions of dollars, and has added 24 Fortune 500 customers.
- Claroty’s capabilities have been recognized by research firms Gartner and Forrester, which have named the company a leader in its field.
Introduction to Claroty and its Funding Round
Claroty, a leading Israeli cybersecurity company, has announced that it has raised $150 million in a Series F funding round. The round was led by Golub Growth, an affiliate of Golub Capital, with additional participation of up to $50 million supported by existing investors. The new capital is intended to accelerate Claroty’s global expansion as it continues to build a comprehensive cybersecurity platform for cyber-physical systems (CPS) and critical infrastructure. This funding round is a significant milestone for the company, and it will enable Claroty to further develop its technology and expand its reach in the market.
Market Demand and Growth
According to Claroty CEO Yaniv Vardi, the company’s market is "red hot" driven by a surge in cyberattacks on hospitals, manufacturing facilities, and industrial companies. Vardi noted that attacks on hospitals alone have grown by 100%, while attackers are increasingly using AI to carry out faster and more sophisticated intrusions. This increased demand for cybersecurity solutions has driven Claroty’s growth, with the company expecting to reach profitability in the near term. Vardi also stated that an initial public offering remains an aspiration, but the company is open to other opportunities that may arise. With the company’s valuation increasing by approximately 80% to an estimated $3 billion, Claroty is well-positioned for future growth and expansion.
Company Performance and Capabilities
Claroty has experienced significant growth in recent years, with the company growing by 300% in the past three years and reaching revenues in the hundreds of millions of dollars. The company has also added 24 Fortune 500 customers and recently launched a first-of-its-kind AI-based catalog for classifying physical assets. This catalog gives organizations improved visibility and accuracy in identifying and tracking assets exposed to cyber risk. Claroty’s capabilities have been recognized by U.S. research firms Gartner and Forrester, which have named the company a leader in its field. With its comprehensive cybersecurity platform and growing customer base, Claroty is well-established as a leading player in the cybersecurity industry.
Global Expansion and Workforce
Claroty currently employs about 750 people, including roughly 350 in Israel, with the remainder based in New York, Europe, the Asia-Pacific region, and Latin America. The company has raised approximately $700 million through a combination of equity and credit financing, with investors including SoftBank Vision Fund 2, Bessemer Venture Partners, Standard Industries, and Delta-V Capital, alongside strategic backers such as Schneider Electric, Siemens, Rockwell Automation, LG, and Toshiba Digital Solutions. With its global workforce and significant funding, Claroty is well-positioned to continue its expansion and growth in the cybersecurity market.
Future Plans and IPO Considerations
Vardi stated that Claroty could be ready for an IPO as early as next year, although that will depend heavily on market conditions. The company’s growth and increasing valuation make it an attractive candidate for a public offering, and Vardi noted that the company wants to go public. However, the company is also open to other opportunities that may arise, and Vardi stated that "sometimes opportunities arise that are difficult to ignore." With its strong market position and growing customer base, Claroty is well-positioned for future success, whether through an IPO or other strategic opportunities. As the company continues to expand and develop its cybersecurity platform, it is likely to remain a leading player in the industry for years to come.