Dragos, a company specializing in securing industrial control systems, has recently raised $74 million in a Series D round extension led by WestCap. With a total raised amount of $440 million, Dragos intends to further expand its customer base, which currently consists of approximately 400 organizations and governments. The funding will be used to enhance industrial cybersecurity worldwide, as the number and sophistication of attacks on industrial control systems continue to rise. Dragos aims to provide visibility into an organization’s assets and communications, offering analytics to identify threats, prioritize vulnerabilities, and provide response guidelines. With the global market for industrial cybersecurity projected to reach $10.2 billion by 2025, Dragos is well-positioned to succeed.
Dragos raises $74M in Series D round extension
Dragos, a company specializing in securing industrial control systems, has recently announced a successful Series D round extension, raising an impressive $74 million. This funding round was led by WestCap and brings the total amount raised by Dragos to $440 million. The company’s post-money valuation remains unchanged at $1.7 billion for the second year running. This infusion of capital will enable Dragos to continue growing and expanding its customer base, which currently includes around 400 organizations and governments worldwide. Dragos CEO Robert Lee explains that this funding will help make industrial cybersecurity more accessible on a global scale.
Overview of Dragos and its mission
Dragos was founded in Hanover, Maryland, by Robert Lee, Justin Cavinee, and Jon Lavender. The inspiration for the company came from Lee’s experience as a cyber warfare operations officer in the U.S. Air Force. Dragos aims to assist asset owners and operators, particularly in industries such as electric, water, oil and gas, and chemical, in protecting their infrastructure from cyber threats. With the increasing frequency and sophistication of attacks on industrial control systems, Dragos plays a critical role in safeguarding these systems.
Securing industrial control systems
As the threat landscape continues to evolve, securing industrial control systems has become increasingly important. Dragos’ goal is to provide visibility into an organization’s assets and communications, offering analytics-based threat detection and prioritization of vulnerabilities. Additionally, the company provides playbooks for responding to cyber attacks. One of the standout features of Dragos is its managed hunting service, which actively searches for threat activity within an industrial control system environment. The company also offers a threat intelligence service, enabling customers to anonymously share intelligence with the wider community.
Increasing threats and market potential
The number of cyber attacks targeting industrial control systems has been on the rise, both in terms of frequency and complexity. In 2022 alone, Dragos competitor Waterfall Security Solutions reported 57 attacks on industrial control systems, representing a 140% increase compared to the previous year. Additionally, a survey by ABS Group revealed that 45% of organizations perceive threats to their control systems as “high,” with another 15% considering them “severe or critical.” This growing threat landscape presents significant market potential for companies like Dragos. According to Frost & Sullivan, the global market for industrial cybersecurity is projected to reach $10.2 billion by 2025, up from $3.3 billion in 2020.
Details of the Series D round extension
The recent Series D round extension saw Dragos secure $74 million in funding. This brings the total amount raised in this round to an impressive figure while also maintaining the company’s post-money valuation of $1.7 billion. WestCap, the leading investor in this round, has made a significant impact on Dragos’ operations. The infusion of funding provides Dragos with operational flexibility and the ability to expand its industrial cybersecurity offerings further.
Amount raised and valuation
With the additional $74 million raised in the Series D round extension, Dragos has now accumulated a total of $440 million in funding. This significant investment showcases the strength of the company’s mission in securing industrial control systems and its potential for growth. Even with this substantial funding, the company’s post-money valuation remains constant at $1.7 billion. This demonstrates the confidence of investors in Dragos’ capabilities and market potential.
Leading investor and impact on operations
WestCap, a prominent investment firm, led the Series D round extension for Dragos. The involvement of WestCap provides Dragos with a valuable partner and resource to support its growth. With a proven track record in supporting innovative and high-growth companies, WestCap’s investment will have a positive impact on Dragos’ operations, allowing the company to expand its reach and build upon its success in securing industrial control systems.
Use of funds and growth plans
The $74 million raised in the Series D round extension will be instrumental in Dragos’ future growth and expansion. The funds will primarily be used to continue growing the company’s customer base, which currently consists of around 400 organizations and governments. This investment allows Dragos to further enhance its industrial cybersecurity offerings and make them more accessible globally. With increasing threats to industrial control systems, Dragos’ growth plans are aligned with the rising demand for robust cybersecurity solutions in various industries.
Founders and inspiration
Dragos was co-founded by Robert Lee, Justin Cavinee, and Jon Lavender, three individuals with a deep understanding of the importance of cybersecurity. Robert Lee’s experience as a cyber warfare operations officer in the U.S. Air Force provided the inspiration for Dragos. Through their collective expertise, the founders of Dragos aimed to protect critical infrastructure in industries such as electric, water, oil and gas, and chemical from cyber threats.
Robert Lee, Justin Cavinee, and Jon Lavender
Robert Lee, Justin Cavinee, and Jon Lavender are the co-founders of Dragos. Their shared vision and expertise in cybersecurity have been instrumental in building the company’s success. Robert Lee, in particular, drew upon his experience as a cyber warfare operations officer in the U.S. Air Force to shape the mission and direction of Dragos. With their leadership, Dragos has become a prominent player in securing industrial control systems.
Background in the U.S. Air Force
The founders of Dragos, Robert Lee, Justin Cavinee, and Jon Lavender, have a background in the U.S. Air Force. This experience provided them with valuable insights into the importance of cybersecurity, particularly in relation to critical infrastructure. The knowledge and skills acquired during their time in the Air Force have been instrumental in developing the innovative solutions offered by Dragos.
Threat landscape and need for industrial cybersecurity
The threat landscape for industrial control systems has evolved significantly in recent years. Threat actors are targeting and attempting to control the world’s industrial infrastructure through cyber attacks. Previously considered relatively isolated from IT networks, industrial control systems are now increasingly connected, making them vulnerable to cyber threats. This changing landscape highlights the critical need for industrial cybersecurity solutions, such as those provided by Dragos, to protect vital infrastructure and maintain operational integrity.
Dragos’ intention to go public
Dragos has expressed its intention to go public, with an initial public offering (IPO) being part of the company’s long-term plans. While no specific timeline has been announced, Dragos’ goal is to further establish itself as a leader in industrial cybersecurity and eventually make its public debut. As the demand for industrial cybersecurity solutions continues to grow, Dragos is poised to leverage its expertise and market position to capitalize on the potential benefits of going public.
Timeline for potential IPO
While Dragos’ intention to go public has been made clear, the specific timeline for an IPO has yet to be determined. The company is focused on solidifying its position in the industrial cybersecurity market, expanding its customer base, and enhancing its offerings. As Dragos continues to grow and increase its market presence, it will assess the optimal timing for an IPO based on market conditions and the company’s readiness. By carefully considering these factors, Dragos aims to maximize its potential as it prepares for a potential public offering in the future.
In conclusion, Dragos’ successful Series D round extension, raising $74 million, further solidifies its position as a leader in securing industrial control systems. With the significant funding and support from WestCap, Dragos is well-positioned to continue its growth and expand its customer base worldwide. The company’s mission to protect critical infrastructure from cyber threats has become increasingly important in the face of a growing threat landscape. As Dragos looks towards a potential IPO in the future, it will continue to prioritize delivering innovative industrial cybersecurity solutions to meet the evolving needs of its customers and the market.
