SoftBank co-leads US$400m round in Temasek-backed cybersecurity firm

US-BASED cybersecurity company Claroty, raised US$400 million from investors co-led by SoftBank Vision Fund 2, Bessemer Venture Partners and Schneider Electric to finance expansions, according to a company statement on Wednesday (Dec 8).

Existing investors Temasek's ISTARI, Team8 and Standard Investments also participated in the Series E round, bringing the company's total funding to US$635 million, it said.

Additionally, Yossi Cohen, head of SoftBank Group's investment activities in Israel, will join Claroty's board of directors.

Claroty, which secures devices connected to the Internet across the industrial, healthcare and enterprise industries, will use the fresh funds to acquire Israel-based Medigate, a healthcare Internet of Things (IoT) security company.

The healthcare sector faces a challenge in securing its connected devices, with 82 per cent of health systems reporting a cyberattack in the last 18 months, said Claroty.

While the connection between cyber and physical systems drives competitive advantages, it "creates greater exposure to risks with serious consequences for patient safety, public safety and the environment", said Claroty's chief executive officer Yaniv Vardi.