Agentless cybersecurity company ForeScout technologies reeled in $76 million on Thursday, making it the latest member of the global unicorn — or $1 billion — startup club. The company has brought in $125 million in revenue through the end of 2015 and tripled its value in the last year and a half, culminating in the $1 billion valuation it has as of today. The round was led by Wellington Management Company LLP.
“It took 25 years for the world to get to 5 billion connected devices, but with the explosion of the IoT we’ll see around 30 billion by 2020 — an entirely new approach to security is required,” said Michael DeCesare, ForeScout CEO and President. “Device proliferation and IoT deployments are easy entrances for cyber criminals if not detected and protected. With agentless visibility, intuitive automated controls and a commitment to integrating with leading security and IT management solutions, ForeScout is well positioned to own the burgeoning IoT security market.”
Their flagship tech solution is CounterACT, a tool they say “enriches over 70 security tools with its warehouse of device context enabling, deliberate security orchestration.” The system detects new devices entering a local IoT network, say a home, and secures the network from threats that might come in through theoretically unsecured devices. They plan to use the funding to expand their global reach and increase R&D.
Cyber is hot
Markets and Markets estimates the global cyber security industry will be worth about $170 billion by 2020 and grow annually at a rate of 9.8% (CAGR) over the next five years. In 2015, security company CyberArk gained unicorn status. The IoT security industry includes several segments: vehicle security, medical IoT security, wearables, and of course smart homes. Israeli companies Argus and Check Point announced on Wednesday a collaboration for IoV (internet of vehicles) security, while a recent Indiegogo campaign promoted CUJO as a device to secure an entire home network of devices.
“CounterACT allows, denies or limits network access based on device posture and your security policies. It can also automatically assess and remediate malicious or high-risk endpoints to help you comply with industry mandates and regulations,” according to ForeScout’s website.
They list FireEye, Tenable Network Security, Rapid 1, Qualys, Palo Alto Networks, MobileIron, Invincea, Intel Security, and IBM among their business partners. They boast 2,000 customers in over 60 countries.
Chief Architect Dror Comay and CTO Oded Comay founded the startup in 2000. The executive team also includes CEO Michael DeCesare and Chief Strategy Officer Pedro Abreu. They maintain offices in Tel Aviv and Campbell, California, with sales contacts in Europe, the Far East, and Latin America.