Dragos Becomes First Industrial Cybersecurity Unicorn After Raising $200 Million
Dragos has become the first industrial cybersecurity unicorn — with a valuation of $1.7 billion — after raising $200 million in a Series D funding round.
The latest funding, which brings the total raised by Dragos to roughly $360 million, was led by Koch Disruptive Technologies and funds and accounts managed by BlackRock. Several other investors also took part in this round.
Robert Lee, CEO and co-founder of Dragos, told SecurityWeek in an interview that his company had not been actively looking for investors, and noted that this significant funding round highlights the growing importance of the OT cybersecurity market.
Dragos offers a platform that provides asset visibility and inventory, vulnerability management, threat detection, and investigation and response capabilities. While many cybersecurity firms regularly release new features and capabilities for their products, Lee told SecurityWeek that Dragos is currently focusing on efficiency — helping customers operationalize — rather than innovation.
Dragos currently has 360 employees and operations around the world, but it wants to continue growing, which includes expansion to new regions and market verticals. The company reported 100% YoY growth in platform recurring revenue.
Lee said one of his goals is for Dragos to become a publicly traded company, but he could not share any specific plans for an IPO.
Other industrial cybersecurity companies have also announced raising significant amounts of money in recent months — Claroty announced raising $140 million in June — but, based on public information, Dragos is now the highest valued firm in this sector.
Dragos is currently tracking nearly 20 groups that pose a threat to industrial organizations, and an increasing number of companies have turned to Dragos for incident response. Lee said roughly two-thirds of the incidents they investigate are a result of opportunistic attacks, while the rest are targeted.
Lee noted that while some industries, such as electric, have done a good job at keeping up with the threat landscape, there are some sectors, such as manufacturing, that have fallen behind.