Industrial cybersecurity firm Nozomi Networks raises $100M

August 02, 2021

Industrial cybersecurity firm Nozomi Networks Inc. announced it has raised $100 million in new funding to help accelerate the company’s growth.

Triangle Peak Partners led the Series D round. Other investors included Forward Investments, Honeywell Ventures, In-Q-Tel, Keysight Technologies, Porsche Ventures, Telefónica Ventures, GGV Capital, Lux Capital, Energize Ventures, Planven Entrepreneur Ventures and Activate Capital.

Founded in 2013, Nozomi Networks offers cybersecurity and operational visibility solutions for industrial control systems. The company’s ICS system providers real-time visibility to manage cybersecurity risk and improve industrial operations resilience.

Nozomi Networks accelerates digital transformation by protecting the world’s critical infrastructure, including industrial and government organizations. Customers gain advanced cybersecurity, improved operational reliability and IT/OT integration.

With customers in sectors such as energy, manufacturing, mining, transportation and utilities, Nozomi Networks has seen strong growth as cyber attacks on critical infrastructure continue to grow.

“The number of attacks has more than doubled year on year,” Chief Executive Officer Edgard Capdevielle told Reuters. “We’ve gone from having a malicious insider here and there, somebody that didn’t like how he or she got fired, to now these ransomware folks that want to shut you down.”

The company saw a 110% increase in annual recurring revenue in 2020 with its customer base doubling over the same period. Nozomi Networks also saw 5,000% growth in the number of devices its solution monitors. Entering 2021, the company continues to exceed its revenue goals.

The diverse range of investors is said to reflect interest by Nozomi Networks’ customers to invest in the company, among them car maker Porsche AG. “Digitalization is changing and disrupting entire industries, including the automotive sector,” Stephan Baral, head of Porsche Ventures Region U.S., said in a statement. “Cybersecurity is playing a crucial and growing role for all companies and their internal processes and production facilities as cyber-attacks have become a serious threat.”

The funding, which will include Nozomi Networks increasing its headcount and enhancing its products, comes ahead of a potential future initial public offering. The company itself describes the funding as be pre-IPO.

Including the new funding, Nozomi Networks has raised $152.5 million to date, according to data from Crunchbase.