Claroty, a cyber-physical systems security company based in New York, has recently secured $100 million in strategic growth funding from Delta-v Capital. This substantial investment will allow Claroty to expand its presence in the public sector and transportation industries, as well as pursue potential acquisitions in areas such as microsegmentation.
CEO Yaniv Vardi expressed his excitement about the funding, highlighting the company’s intention to deepen its footprint in heavily regulated verticals and key markets like the United States and Japan. With the financial support from Delta-v Capital, Claroty aims to enhance its technology capabilities and provide a comprehensive platform tailored to the needs of critical infrastructure organizations.
The funding round, which comes 27 months after Claroty’s $400 million Series E round led by SoftBank, signifies a significant milestone for the company. Claroty’s valuation has reportedly reached $2.5 billion, reflecting its continued growth and success in the cybersecurity sector. The company achieved over $100 million in annual recurring revenue last year, showcasing its strong performance and market demand for its solutions.
One of Claroty’s strategic focuses is on potential acquisitions, particularly in the realm of microsegmentation. Vardi emphasized the importance of aligning with companies that can enhance Claroty’s network protection offerings and provide additional value to customers. By exploring opportunities to acquire companies with established market share and revenue in target verticals, Claroty aims to accelerate its growth and broaden its customer base.
In particular, Claroty plans to concentrate on the transportation industry in response to new regulations set forth by the U.S. Transportation Security Administration. With several airlines, airports, and shipping ports already utilizing Claroty’s solutions, the company sees a significant opportunity for expansion in this sector. By attending transportation events, adhering to industry regulations, and promoting its tools, Claroty aims to further solidify its presence in the transportation vertical.
Additionally, Claroty is pursuing initiatives to strengthen its presence in key markets such as Japan and the United States. The company intends to allocate resources to enhance its marketing and customer support efforts in these regions, leveraging their industrial economies and regulatory frameworks to drive growth. By focusing on metrics like annual recurring revenue, net retention rate, and operational efficiency, Claroty aims to position itself for potential future developments, including a potential initial public offering (IPO).
Vardi emphasized the importance of maintaining a healthy business foundation and readiness for an IPO, noting that while Claroty could be prepared for such a move, external market conditions play a significant role in the decision-making process. By prioritizing sustainable growth and operational efficiency, Claroty aims to continue its expansion and innovation in the rapidly evolving cybersecurity landscape.