Armis Raises $65 Million to Accelerate its 700% Growth in Addressing Massive Enterprise IoT Security Exposure

Led by Sequoia, funding asserts Armis’ leadership as company wins in healthcare, manufacturing, retail, and finance sectors

Palo Alto, CA – April 11, 2019

Armis, the enterprise IoT security company, today announced it has raised $65 million in Series C funding, bringing the company’s total funding to $112 million. The round was led by Sequoia Capital, with participation from Insight Venture Partners and Intermountain Ventures joining. Bain Capital Ventures, Red Dot Capital Partners, and Tenaya Capital also participated as return investors. Carl Eschenbach, partner at Sequoia, joined the board of directors.

The connected enterprise represents an expanding attack surface, with recent reports on ransomware attacks impacting multinational corporations, often through insecure, unmanaged devices. According to Gartner, IoT endpoints will grow to 25 billion units by 2021, with the highest growth in the cross-industry category. These unmanaged and un-agentable devices have no inherent security, and cannot be protected by legacy security solutions.

“IoT security has come of age, with CIOs and CISOs across industries prioritizing it as they realize the significant risk these connected devices pose,” said Yevgeny Dibrov, CEO and co-founder of Armis. “Our platform is purpose-built to address these new insecure endpoints, what we call ‘un-agentable’ devices. But beyond the technology, it’s how we partner closely with our customers to secure this new attack landscape.”

The company will use the Series C funds to accelerate investments in sales, marketing, and engineering, as it looks to expand the only effective cross-industry solution built to address the security exposures of Enterprise IoT devices.

Carl Eschenbach, partner at Sequoia, said: “Armis offers companies unprecedented visibility across managed and unmanaged devices during a time when the number of IoT devices is exploding. As every industry and market segment faces the issue of identifying and securing these devices, Armis is providing the best solution with their easy to install, agent-less platform. This, along with their incredible team and company culture, is why we’ve partnered with the company since the Series A in Israel and are thrilled to be part of this next phase of growth.”

“The IoT security marketplace is growing at an incredible rate,” said Jeff Horing, Managing Director at Insight Venture Partners. “Armis executed extremely well early on, and has built the platform and approach we believe in to address $30 billion dollar market.”

“As the first to partner with Armis, I saw the huge pain point they address and the leadership of Yevgeny and Nadir as a winning combination,” said Gili Raanan, Armis’ Chairman. “With their solid technology and customer deployments across 165 countries, Armis has become the defacto IoT security standard for hospitals, manufacturing, retail, tech, finance & banking industries.”

Armis is the only enterprise-class agentless security platform to address the growing problem of unmanaged and unprotected IoT devices. Leveraging insights from its cloud-based Device Knowledgebase, which monitors over 80 million devices worldwide, the Armis platform delivers comprehensive visibility of every device across an enterprise environment, analyzes and classifies devices and their behavior in order to identify risks or attacks, and protects critical information and systems. This past year Armis has seen 700% growth in annual revenue, with multiple multimillion-dollar contracts with enterprises, and has deployments in more than 25% of the Fortune 100. Customers include Mondelēz, Sysco Foods, Allergan and Samsung Research America, among others

Armis for Healthcare

Healthcare organizations are going through a huge digital transformation with the Internet of Medical Things (IoMT), encompassing medical devices like connected infusion pumps, MRI machines, X-Ray machines, smart beds, and patient monitors. But these devices lack the appropriate security. Chief Medical Information Officers (CMIOs) focused on patient safety are also concerned about protecting personal information and hospital operations. To do that, they need to secure all connected devices in their environment, from medical devices to smart HVACs, smart TVs, and iPads. Recently, the DHS warned that malicious actors can take over heart devices, and another report showed how even medical reports, such as x-rays, can be hacked and altered.

“We’re entering an age of digital healthcare with a generation of medical devices designed to connect that have no security built into them.” Nadir Izrael, CTO & Co-Founder. “I speak with healthcare companies regularly, and I’ve seen the ways that connected devices in hospitals are being targeted by malicious actors or exposed — MRI machines talking to servers in Russia, a medical crash cart being used to access Facebook or phishing websites, and even patient data being sent unencrypted.”

Armis for Operational Technology (OT)

Industrial IoT brings the promise of improved efficiency and access to critical data in real time. By 2019, 75 percent of large manufacturers will have incorporated the Industrial IoT in their operations. This includes sensors to enable companies to monitor temperature and humidity in food manufacturing, or performance of the production line for automobile manufacturing. But the convergence of IT with OT gives cyber attackers a greater opportunity to affect the physical world and possibly impact the safety and lives of people. Ransomware continues to target industrial systems, as evidenced by recent LockerGoga attacks impacting numerous global manufacturers.

Most of these smart devices and sensors were not designed with security in mind, and they lack the ability to install an agent, so they are completely unmanageable from a security perspective. This includes devices such as industrial control systems, PLCs, HMIs, tablets, smart lighting, barcode scanners, internet connect forklifts, robotic arms, digital microscopes, infrared readers, and more. Companies using Armis can instantly protect themselves when using IoT devices by identifying all devices, tracking their behavior, and taking action — thereby reducing production downtime.

“Our connected factories, assembly lines and distribution centers are key enablers in accelerating our growth and it is essential that they run reliably,” said Paolo Vallotti, Global Chief Information Security Officer, Mondelēz International, the maker of popular snack brands like Cadbury, Nabisco, Toblerone, and Oreo. “Our manufacturing systems operate around the clock so we can provide high-quality products for customers all over the world. By using Armis, we have further enhanced our visibility and control to ensure production is not disrupted.”

To learn more about Armis please visit: www.armis.com

About Armis

Armis is the first agentless, enterprise-class security platform to address the new threat landscape of unmanaged and IoT devices. Fortune 1000 companies trust our unique out-of-band sensing technology to discover and analyze all managed, unmanaged, and IoT devices—from traditional devices like laptops and smartphones to new unmanaged smart devices like smart TVs, webcams, printers, HVAC systems, industrial robots, medical devices and more. Armis discovers devices on and off the network, continuously analyzes endpoint behavior to identify risks and attacks, and protects critical information and systems by identifying suspicious or malicious devices and quarantining them. Armis is a privately held company and headquartered in Palo Alto, California. Follow us on Twitter, LinkedIn and Facebook.

About Bain Capital Ventures

Bain Capital Ventures partners with disruptive founders to accelerate their ideas to market. The firm invests from seed to growth in startups driving transformation across industries, from security and cloud infrastructure to logistics and e-commerce to finance and healthcare. The firm has helped launch and commercialize more than 240 companies, including DocuSign, Jet.com, Kiva Systems, Lime, LinkedIn, Rapid7, Redis Labs, Rent the Runway, Rubrik, SendGrid and SurveyMonkey. Bain Capital Ventures has $5.2 billion in assets under management with offices in San Francisco, New York, Boston and Palo Alto. Follow the firm via LinkedIn and Twitter.