Dell-Backed VDOO Raises $32M To Boost IoT Device Security Platform
IoT security startup VDOO raises a $32 million Series B to help partners provide scalable security solutions to connected device makers: 'It's adding an important component without changing the DNA of the manufacturer in a scalable manner,' the company's co-CEO says.
Internet of Things security startup VDOO is looking to expand its engagements with channel partners after raising a $32 million Series B funding round.
The round, which was announced on Tuesday, comes after the Tel Aviv-based company launched its end-to-end IoT security solution earlier this year, which includes on-device software that automatically tailors security features for connected devices based on their specifications and vulnerabilities. The company was previously focused on its Vision analysis platform, which is part of the larger solution.
The funding round was led by venture capital firms WRV and GGV Capital, with participation from Japanese mobile phone giant NTT DOCOMO and MS&AD Ventures, the latter of which is the venture capital arm of a Japanese cyber insurance firm. The company's total funding is now $45 million, which includes initial funding from Dell Capital and 83North.
Uri Alter, co-CEO and co-founder of VDOO, told CRN that the company will use the new funding to expand its sales and marketing operations and develop new features for its products, which target device manufacturers, as well as system integrators and distributors that work with OEMs.
"We're looking to build a scalable partnership here, so it does take time to build the partnerships and onboard the partners," Alter said of VDOO's system integrators and distributors. "We've cherry-picked the ones that have the right install base and a willingness to build a scalable operation."
While Alter said he couldn't identify the channel partners VDOO is working with in the United States, the company has found early success in Japan, with Japanese firms NTT, Macnica, DNP and Fujisoft signing up as partners. Partners make money with VDOO by taking a cut of the software sale in addition to providing additional services, such as threat monitoring and device management.
The main appeal for partners is that VDOO's products can enable them to offer a scalable security solution for IoT device makers that would otherwise be difficult to provide due to limited resources, largely with respect to a partner's headcount.
"It's adding an important component without changing the DNA of the manufacturer in a scalable manner," Alter said.
VDOO was named one of this year's coolest IoT security vendors in CRN's 2019 IoT 50 list.