Late 2019, we briefly covered Israeli IoT security startup Vdoo after one of its investors, 83North, raised a $300 million funding to invest in exceptional European and Israeli startups. With over $1 billion war chest, 83North invests in the best and brightest consumer and enterprise technology companies led by aspiring European and Israeli entrepreneurs.
The Internet of Things (IoT) or 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.
Today, Vdoo announced it has raised $5 million in Series B funding extension to expand its offering to the telco and smart utility space, at the backdrop of the connectivity surge induced by COVID-19. The round, which increased the total capital raised by Vdoo to $70 million, was backed by Qumra Capital and Verizon Ventures and joined existing investors 83North, GGV Capital, Dell Technologies Capital, NTT DOCOMO Ventures, and others.
Founded in 2017 by Asaf Karas, Netanel Davidi, and Uri Alter, Vdoo provides everything companies need to secure their connected products, including security analysis, gap resolution, validated compliance, embedded protection, and operations monitoring. Vdoo consists of a team of serial entrepreneurs with deep expertise in endpoint and embedded system security. The startup has a global presence with offices in the U.S., Germany, Israel and Japan. Vdoo is also used by Fortune 500 companies including Bosch, Stanley, Samsung, Verizon, and many others.
Tammy Mahn, Managing Director, Verizon Ventures: “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. 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.”
Boaz Dinte, Managing Partner, Qumra Capital: “The number of connected IoT devices is rapidly growing, creating greater opportunities for security breaches. 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.”
Netanel Davidi, CEO, 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 globally. 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.”