The number of cybersecurity-related financing deals reached its highest point in 2022, but that doesn’t mean the sector is underutilized. According to Statista, in the second quarter of 2023 he had 148 deals, worth a total of $1.6 billion.
And, at least anecdotally, deal flow in the third quarter also looks healthy. Case in point, Xage securitya startup that provides software that prevents network intrusions, today announced that it has raised $20 million in a B2 funding round, bringing the company’s total funding to $80 million.
Piva Capital, March Capital, SCF Partners, Overture Climate Fund, Valor Equity Partners, Chevron Technology Ventures, and Science Applications International Corporation participated in Xage’s B2. Sources familiar with the matter told TechCrunch that the pre-money valuation is about 60% higher than Xage’s pre-money as of January 2022, when the company first closed its Series B.
Geoffrey Mattson, who was appointed CEO of Xage in September, said the proceeds will be used to expand research and development and Xage’s go-to-market operations, with a focus on expanding its presence in the Asia-Pacific region.
“Despite mixed technology economics, cybersecurity attacks against critical infrastructure are on the rise, and Xage sees growing tailwinds and headwinds given the threat environment and customer needs. ,” Mattson told TechCrunch in an email interview. “With more companies operating remotely to reduce costs, it is more important than ever to provide Zero Trust security solutions for critical infrastructure and distributed operations, including operational technology, IT, and cloud environments. Yes, it is a priority.”
Xage was founded in 2016 by Susanto Irwan and Roman Arutyunov after noticing an increase in attacks on Internet of Things (IoT) devices, including devices such as surveillance cameras and temperature sensors. (This trend continues, with 41% in his first two months of 2023. Rise Average number of weekly attacks per organization targeting IoT devices compared to 2022. )
With Xage, Irwan and Artyunov can protect IoT devices and operational technology (the hardware and software used to monitor, control, and upgrade industrial systems), whether they are isolated or connected to the cloud. We have started developing a cybersecurity platform that can.
Xage’s core product sits on top of your existing environment, ostensibly without the need for network changes, either on-premises or as part of a software-as-a-service installation. Xage “monitors” device interactions and data movements and changes on a company’s network, discovering policy violations, and enforcing security policies, including invoking multi-factor authentication for system logins from unknown locations. I will do it.
Xage is not alone in the market for platforms that protect IoT and industrial systems. Dragos is probably its biggest competitor, at least on the startup side. But Xage has done well when it comes to customer acquisition, with the U.S. Space Force winning him a $17 million contract and the U.S. Air Force a $743,000 contract.
Xage’s other customers include energy, manufacturing, utilities, and transportation infrastructure operators. Mattsson claims that the startup’s revenue of about 90 employees increased by 420% year-on-year in the first half of 2023, and bookings increased by 560%.
“When the pandemic first broke out, Zarj There was a temporary pause in demand as customers tried to organize their businesses,” Mattson said. “Fortunately, Zarj Companies believe that information and data security is key to business continuity, and they have secured a comfortable runway.
Source: techcrunch.com
