Armis raises $65m for enterprise IoT security
Written by Peter Walker
Enterprise Internet of Things (IoT) security company Armis has raised $65 million in Series C funding, bringing the company's total funding to $112 million.
The round was led by Sequoia Capital, with participation from Insight Venture Partners and Intermountain Ventures joining. Bain Capital Ventures, Red Dot Capital Partners and Tenaya Capital also participated as return investors.
Carl Eschenbach, partner at Sequoia, joined the board of directors.
The company will use the funds to accelerate investments in sales, marketing and engineering, as it looks to expand its cross-industry solution built to address the security exposures of enterprise IoT devices.
A statement explained that connected enterprise represents an expanding attack surface, with recent reports on ransomware attacks impacting multinational corporations, often through insecure, unmanaged devices. These ‘un-agentable’ devices have no inherent security and cannot be protected by legacy security solutions, noted Armis.
"IoT security has come of age, with CIOs and CISOs across industries prioritising it as they realise the significant risk these connected devices pose," said Yevgeny Dibrov, chief executive and co-founder of Armis. "Our platform is purpose-built to address these new insecure endpoints, what we call 'un-agentable' devices; but beyond the technology, it's how we partner closely with our customers to secure this new attack landscape."
Jeff Horing, managing director at Insight Venture Partners, commented: "The IoT security marketplace is growing at an incredible rate. Armis executed extremely well early on, and has built the platform and approach we believe in to address $30 billion dollar market."
Leveraging insights from its cloud-based Device Knowledgebase, which monitors over 80 million devices worldwide, the Armis platform delivers visibility of every device across an enterprise environment, analyses devices and their behaviour in order to identify risks or attacks.
This past year Armis has seen 700 per cent growth in annual revenue, with multiple multi-million-dollar contracts with enterprises, and has deployments in more than a quarter of the Fortune 100. Customers include Mondelēz, Sysco Foods, Allergan and Samsung Research America.
One growth sector has been the digital transformation with the Internet of Medical Things (IoMT), encompassing devices like connected infusion pumps, MRI machines, X-Ray machines, smart beds, and patient monitors.
"We're entering an age of digital healthcare with a generation of medical devices designed to connect that have no security built into them," Nadir Izrael, Armis chief technology officer and co-founder. "I speak with healthcare companies regularly, and I've seen the ways that connected devices in hospitals are being targeted by malicious actors or exposed -- MRI machines talking to servers in Russia, a medical crash cart being used to access Facebook or phishing websites, and even patient data being sent unencrypted."