Israeli cybersecurity company Claroty today announced the completion of a $100 million sixth financing round, in what is described as "pre-IPO round." The financing round reflects a rise in the company's valuation, according to estimates, from just above $2 billion to $2.5 billion, a rare achievement in the current situation, although the company declined to confirm this valuation.
Claroty reports that over the past year annual recurring revenue (ARR) has exceeded the $100 million threshold, although it did not reveal accounting revenue, which is lower. ARR is a term that provides entrepreneurs and investors with an idea about the company's rate of short-term growth.
The latest financing round was led by Delta-v Capital, with the participation of AB Private Credit Investors at AllianceBernstein, Standard Investments, Toshiba Digital Solutions, SE Ventures, Rockwell Automation, and Silicon Valley Bank, a division of First Citizens Bank.
Previous investors that did not participate in the round include SoftBank, headed in Israel by Yossi Cohen, which led the $400 million financing round at the end of 2021, which helped fund the acquisition of Israeli company Medigate, which operates in a similar cybersecurity space, only in the healthcare industry.
When Claroty completed its huge financing round in December 2021, the company spoke ambitiously about annual revenue of $200 million and an IPO within 18 months to two years. However, the cooling off of the tech market reshuffled the deck, although the company still hopes to reach such achievements in the coming years.
The latest financing round brings the total amount raised by the company to $735 million. Previous investors include LG and Team8, whose cofounder Nadav Tzafrir, former commander of the IDF 8200 unit, serves as Claroty's chairman.
Claroty, which was ranked as one of "Globes" ten most promising startups in 2022 has developed a platform that identifies all devices and machines connected in industrial plants and infrastructure facilities, whether control and command systems in nuclear reactors for producing electricity, robots for manufacturing vehicles or machines for packaging medicines in pharmaceutical plants.
Claroty is one of the leaders in the field of infrastructure security in the industrial sector, and it secures connected devices in all Pfizer, BMW, Siemens and Schneider plants, which are also strategic partners and investors in the company. The company has strategic technology partnerships with CrowdStrike, Service Now and Amazon AWS as well as a partner program with several managed security service providers, including Schneider Electric, Rockwell Automation, IBM and NTT.
Published by Globes, Israel business news - en.globes.co.il - on March 6, 2024.
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