Endpoint Security,
Governance & Risk Management,
Internet of Things Security
Series D Funding Secures $200 Million at $4.2B Valuation to Propel Growth in OT and Medical Device Security
Armis, a rising player in cyber exposure management, has successfully raised $200 million during its Series D funding round, which places the company’s valuation at $4.2 billion. This latest capital infusion is intended to broaden its product offerings, pursue strategic acquisitions, and accelerate market entry.
Based in San Francisco, Armis aims to address heightened market demands concerning operational technology (OT) and medical device security. Yevgeny Dibrov, co-founder and CEO, emphasized that the raised funds will advance innovation in vulnerability management and enhance government-directed initiatives. “The market opportunity we are tackling with our cyber exposure management platform is vast; we intend to ramp up our go-to-market efforts,” he stated in an interview with Information Security Media Group.
Founded in 2015, Armis has grown to nearly 700 employees and previously achieved a $300 million Series C funding round in November 2021, establishing its valuation at $3.4 billion. This recent investment marks a notable increase in valuation by approximately 25% in a challenging economic landscape. Dibrov, previously responsible for global business development at Adallom, has led Armis since its inception and has seen the firm expand from its asset management roots into sectors such as OT, Internet of Things (IoT), and cyber risk management.
Focus on OT and Medical Device Security
The Series D funding round secured participation from General Catalyst and Alkeon Capital, both of whom Dibrov credited for their impactful role in driving growth and enhancing client relationships. With a commitment to optimizing growth and efficiency, Armis is positioning itself for a potential IPO by refining its strategies in growth and software-as-a-service (SaaS) metrics.
In the realm of mergers and acquisitions (M&A), Dibrov articulated a clear strategy focused on conducting due diligence for cultural fit, technical prowess, and unique product offerings. He perceives acquisitions as pivotal in expanding Armis’ capabilities to meet burgeoning client demands, especially in scenarios where in-house development is insufficiently swift. Earlier this year, Armis made significant strides by acquiring the vulnerability prioritization firm Silk Security for $150 million alongside CTCI, a honeypot technology provider.
The company’s expertise in OT and medical device security is reinforced by a considerable client base across the manufacturing, healthcare, and critical infrastructure sectors—areas characterized by stringent regulatory environments and operational imperatives. “In sectors like manufacturing and healthcare, the consequences of a cyber disruption can extend beyond financial loss to pose severe risks,” Dibrov remarked, highlighting the crucial nature of these services.
Expanding within the Federal Sector
Looking ahead, Dibrov acknowledged an increasing demand from clients for effective vulnerability management solutions that encompass prioritization and remediation capabilities. Further exploration into application security is also underway, leveraging the developer relations that emerged from the Silk acquisition. “With numerous vulnerabilities, organizations need to identify which ones to address first effectively. It’s crucial to find a centralized solution that integrates across both on-premises and cloud environments,” he added.
Part of the newly acquired funding will enhance Armis’ market strategies across federal, state, and local government sectors. The company is making strategic investments in research and development, particularly to meet government-specific requirements, exemplified by achieving certifications such as FedRAMP and aspiring towards higher Department of Defense (DoD) compliance.
Dibrov noted, “We are focused on establishing a more significant presence in territories where we see solid momentum.” Continuous engagement with customers is at the core of Armis’ product innovation, ensuring that the firm’s offerings remain agile and responsive to the evolving cybersecurity landscape. “My communications with customers inform our product development and acquisition strategies, essential for meeting their changing needs,” he concluded.
