Israel-based Karamba Security, a leading developer of endpoint protection for connected devices, has secured $10 million in new funding in an extension to its B Round financing. VinFast, a member of Vingroup, the largest private conglomerate in Vietnam, led the investment with participation from SVIC, a leading corporate VC from South Korea, and existing investors: YL ventures, Fontinalis Partners, Liberty Mutual, Presidio Ventures, Glenrock, Paladin Group and Asgent. This brings the total capital invested in Karamba Security to $27 million.
Investors in the round were motivated by Karamba’s strong customer base and leadership in IoT and automotive security. Other factors were the due diligence conducted with Karamba’s customers and the growing need for IoT and automotive compliance with new cybersecurity regulations.
The company will use the new funding to accelerate development of its product roadmap to meet customer demands to comply with newly created regulations such as UN R155 and ISO 21434 for automotive cybersecurity and the US Executive Order on Improving the Nation’s Cybersecurity.
Karamba Security provides cybersecurity solutions that secure a device’s entire lifecycle without interference of R&D or supply chain processes. Karamba’s IoT security enables automotive OEMs and suppliers, as well IoT device manufacturers, to comply with industry regulations and differentiate their offerings without imposing costly changes on their product development schedules or requiring changes to legacy modules they use.
Karamba says that its recently launched, cloud-based incident analysis has been getting strong market traction, including securing and monitoring a fleet of 800K units in over 100 countries around the globe.
Based on our view of the market and extensive technical evaluation, witnessing first-hand Karamba’s core technology and learning from other OEMs, we see how well-positioned Karamba is to help our companies leapfrog ahead on their paths to cybersecurity. We are particularly impressed with their product leadership and customer traction. In addition, they can help us—as well as other OEMs and IoT device manufacturers—to comply with the new cybersecurity regulations, such as UN and ISO/SAE automotive cybersecurity requirements and the US Executive Order for Cybersecurity, something that is essential for our expansion plans into the European and US markets.
R155, based on the newly ratified global ISO/SAE 21434 standard, will become mandatory in the EU for all new vehicle types from July 2022 and all new vehicles sold from July 2024. R155 requires a compliant Cyber Security Management System (CSMS) that covers development, production and post-production phases.