Toronto-based cybersecurity provider Cybeats has secured $3 million in financing.
Canadian early-stage venture capital firm Ripple Ventures led the deal, which builds on Cybeat’s pre-seed round in January.
Also investing were GreenSoil Building Innovation Fund, MaRS Investment Accelerator Fund, MLA48, ScaleX Ventures and iNovia Capital.
Ripple’s Matt Cohen and GreenSoil’s Susan McArthur will join the board.
Founded in 2016, Cybeats’ technology protects internet-of-things devices in the smart building, medical and critical infrastructure environments from cyber threats.
Led by CEO Dmitry Raidman, the startup will use the funds raised for sales, research and development, and team expansion.
Cybeats Announces $3M Investment for Cybersecurity and Lifecycle Management for IoT Devices
Cybersecurity protection solution provides software-based microagent for smart buildings, medical devices, and critical infrastructure
December 18, 2018
TORONTO–(BUSINESS WIRE)–Cybeats, a rapidly growing cybersecurity company protecting Internet of Things (IoT) devices, today announced it has raised $3 million to expand the team in Toronto and abroad.
The round was led by early-stage venture capital fund Ripple Ventures, with investment from real estate technology venture capital fund GreenSoil Building Innovation Fund, and participation from MaRS IAF, MLA48, ScaleX and inovia capital. The funding will be used to expand sales, research and development, and Cybeats’ enterprise capabilities with a focus on smart buildings, medical devices and critical infrastructure. As part of the financing, Cybeats welcomes to its board Matt Cohen, Founder and Managing Partner, Ripple Ventures and Susan McArthur, Managing Partner, GreenSoil Building Innovation Fund.
Cybeats deploys internal defense, monitoring and lifecycle management for IoT devices to protect against known and completely new cybersecurity threats. Through an “inside-out” approach, Cybeats deploys a microagent in the firmware that complements the existing software and hardware of the device, and ensures it will not be compromised.
“With the proliferation of IoT devices where we work, live, travel and shop, and increase in the number of access points prone to malware attacks, it is critical that we adopt a new approach to cybersecurity for all network-connected devices,” said Dmitry Raidman, co-founder and CEO of Cybeats. “The security certification of IoT devices is imperative in order to detect and neutralize these growing threats. Cybeats provides an efficient, simple solution to monitor and overcome security threats.”
Globally, the number of active IoT devices will grow from 7 billion today to 10 billion by 2020, and 22 billion by 2025. Each connected device introduced to a network can become an entry point for attacks into the network. Any weaknesses or vulnerabilities of the devices are exploitable. Cybeats’ technologies allow devices to detect threats instantly and gather data to neutralize threats and monitor for new ones, a key ingredient as we move towards the 5G connectivity that will reduce physical infrastructure costs but exposes so many more devices to the public internet.
“Efficient, reliable cyber security solutions are essential in order to leverage the full potential of digital built environment” said Susan McArthur, Managing Partner, GreenSoil Building Innovation Fund. “Cybeats’ technology is providing real time cybersecurity solutions to IoT device manufacturers and users.”
“Ripple Ventures is extremely excited to be leading this investment in Cybeats as they help detect and prevent more cyber attacks from occurring,” said Matt Cohen, Founder and Managing Partner, Ripple Ventures. “The Cybeats team is among the most experienced and knowledgeable cybersecurity experts we have encountered. We look forward to working closely with Cybeats as they expand their solutions globally.”
Cybeats solves a critical security problem for companies that manufacture, integrate or deploy IoT devices in the smart building, medical and critical infrastructure environments. Until now, IoT devices have been vulnerable to cyber threats, making them easy targets for attackers. Cybeats protects IoT devices throughout their lifecycle by taking an “inside-out” approach to cybersecurity. Cybeats’ microagent is embedded into devices to provide continuous protection that allows devices to detect threats instantly and gather data to help security professionals neutralize the threat. With Cybeats inside every IoT, device security is no longer an issue: device makers can focus on developing new features and functionalities with a faster time to market, ensuring their customers benefit from their secure product.
Co-founded by former Israeli IT infosec professionals, Dmitry Raidman, Peter Pinsker and Vlad Kharbash, Cybeats is the recipient of the 2018 IoT Global Awards in both the Security IoT and Big Data, Cloud and Analytics categories. For more information, visit cybeats.com.
About Ripple Ventures:
Ripple Ventures is an early-stage venture capital firm with headquarters in Toronto, Canada, founded and co-managed by operator-turned-investor Matt Cohen (Managing Partner) and former CEO of Accelerated Connections, Michael Garbe (General Partner.) Ripple employs an Operator First model of funding, remaining actively involved with all of their investments. For more information, visit rippleventures.ca.
About GreenSoil Building Innovation Fund:
GreenSoil Building Innovation Fund is a strategic venture capital fund investing in real estate technology companies which make real estate and infrastructure more productive, efficient and sustainable. For more information, visit: greensoil-investments.com/greensoil-building-innovation
About MaRS IAF:
IAF is a leading seed stage fund investing in high-potential IT, health and cleantech companies. Funded by the Province of Ontario, it has a 10-year history of successfully providing innovative firms with the capital, mentorship and networks needed to validate ideas and bring products to market. This keeps Ontario’s talent and technology local while helping its companies go global. For more information and to apply, please visit marsiaf.com.
Livy Jacobs, Liv PR, 416-888-4695, [email protected]