Vdoo, a leader in product security for embedded software, today revealed it had extended its Series B funding to $57M, in an additional round led by Qumra Capital, Verizon Ventures, and others.
The round was completed in the third quarter of last year, and the new funding was leveraged to expand Vdoo’s offering to the telco and smart utility space at the backdrop of the connectivity surge induced by COVID-19. The round increased the total capital raised by Vdoo to $70M. Qumra Capital and Verizon Ventures joined existing investors GGV Capital, WRVI Capital, 83North, Dell Technologies Capital, NTT DOCOMO, MS&AD Ventures, and prominent private investors in the extension round.
According to Netanel Davidi, Co-Founder and CEO of Vdoo, “Over the last year, we’ve experienced huge market demand from device deployers such as telcos and utilities. These companies are responsible for the security of the millions of devices such as routers, connected home appliances, and smart meters that they deploy to their end-user and customer environment. With Vdoo’s new offering, they can now quickly and easily vet the security and standard compliance of these devices and continue to monitor and protect the devices over the lifecycle of the product. As a result, our newest customers include top U.S. and global telcos and additional utilities players. We are happy to announce this round after receiving strong market validation, and we are thankful we were able to grow significantly in these challenging times.”
The connected product security market continues to expand; research firm Markets and Markets predicts the global device security market to grow from $12.5 billion in 2020 to $36.6 billion by 2025. COVID-19 and the shift to working from home (WFH) have dramatically increased the number of remotely connected devices, accelerating the demand for securing connected products.
Vdoo delivers the industry’s leading automated product security platform for device manufacturers and deployers. Vdoo’s platform performs a complete security assessment in minutes, providing a comprehensive report identifying zero-day vulnerabilities, CVEs, configuration and hardening issues, standard incompliances, and other security exposures with suggested prioritization and remediation mechanisms.
“The world’s top device manufacturers and deployers choose to work with Vdoo because they recognize the importance of securing their products,” said Davidi. “They’re leveraging the Vdoo platform to analyze their security and standards posture before deployment, and then continue to protect their devices through the end of product life. Our customers include dozens of Fortune 500 companies across every industry, geography, and type of connected product, such as automotive, industrial, medical, smart buildings, and now also telcos and utilities.”
“The number of connected IoT devices is rapidly growing, creating greater opportunities for security breaches,” said Boaz Dinte, Managing Partner of Qumra Capital that led the round. “Vdoo’s unique device-centric, deep technology automated approach has already brought immediate value to vendors in a very short period of time. We believe the market opportunity is huge, and with newly infused growth capital, Vdoo is well-positioned to become the leading global player for securing connected devices.”
“With the expansion of 5G networks and mobile edge compute, there’s a need for an end-to-end, device-centric security approach to IoT,” said Verizon Ventures [Managing Director] Tammy Mahn. “As the venture arm of a leading telco, Verizon Ventures is proud to invest in Vdoo and its world-class team on their journey to solve this global need, while ushering in a new era of security by design in our increasingly connected world.”