Dragos, an Industrial Control Systems Security Company, Raises $74 Million in Series D Extension
Dragos, a leading software company specializing in securing control systems for manufacturing and industrial equipment, has successfully raised $74 million in a recent Series D round extension. This funding round, led by WestCap, brings Dragos’ total raised capital to an impressive $440 million. The company’s post-money valuation remains unchanged at $1.7 billion for the second consecutive year. With this new funding, Dragos plans to further expand its customer base, which currently includes around 400 organizations and governments worldwide.
Key Takeaway
Dragos, a software company dedicated to securing industrial control systems, has raised $74 million in funding to support its mission of making industrial cybersecurity more accessible globally.
Addressing the Growing Threats to Industrial Control Systems
Dragos was founded by CEO Robert Lee, along with Justin Cavinee and Jon Lavender, inspired by Lee’s experience as a cyber warfare operations officer in the U.S. Air Force. The company’s primary goal is to assist asset owners and operators, particularly those in industries such as electric, water, oil and gas, and chemical, in safeguarding their infrastructure from threat actors targeting industrial control systems.
Recent data reveals a rise in both the frequency and sophistication of attacks on industrial control systems. In 2022, Dragos competitor, Waterfall Security Solutions, reported a 140% increase in attacks on industrial control systems compared to the previous year, totaling 57 attacks. Furthermore, a survey conducted by ABS Group indicates that 45% of organizations view threats to their control systems as “high,” with an additional 15% considering them “severe or critical.”
The Growing Market for Industrial Cybersecurity
Industrial cybersecurity is increasingly recognized as a vital aspect of protecting critical infrastructure. Industry experts project that the global market for industrial cybersecurity will surge to $10.2 billion by 2025, a substantial increase from $3.3 billion in 2020.
Robert Lee emphasizes how cyberattacks are being leveraged by bad actors to target and control the environments of industrial infrastructure globally. Previously considered “air gapped,” industrial control systems have become more interconnected with IT networks, making them susceptible to cyber threats.
Dragos’ Approach to Enhancing Industrial Control Systems Security
Dragos distinguishes itself by offering a comprehensive platform that delivers visibility into an organization’s assets and communications. Its advanced analytics identify threats, prioritize vulnerabilities, and provide playbooks for responding to attacks. Notably, Dragos is one of the few industrial control security vendors that offer a managed hunting service and a threat intelligence service. Its hunting service allows for the detection and reporting of threat activity within industrial control system environments, while customers can also choose to share threat intelligence anonymously with the wider community.
With a workforce of 500 employees, Dragos has been aggressively expanding its presence worldwide. Notably, the company has increased its operations in Western Europe, particularly in Germany, Austria, and Switzerland. It has also expanded its reach in Saudi Arabia and the United Arab Emirates. More recently, Dragos signed a three-year deal with Singapore’s government cybersecurity arm to assist the country in defending against cyberattacks on its operational technology and critical infrastructure.
In addition to direct agreements and customer engagements, Dragos is focused on developing its partner program, known as the Dragos Global Partner Program. The program provides training to partners involved in reselling, managing, and deploying Dragos’ platform, including its asset discovery and threat detection services.
Robert Lee has previously expressed Dragos’ intention to go public through an IPO, indicating that it is only a matter of time before the company takes this step.
