Dragos, a frontrunner in industrial control systems (ICS) and operational technology (OT) cybersecurity, has announced a significant milestone with a $74 million Series D extension. The VC funding is led by strategic operating and investing firm WestCap, underscoring confidence in Dragos’s trajectory and strategic initiatives.
This extension builds upon the $200 million Series D funding secured by Dragos in October 2021, which was led by Koch Disruptive Technologies, an investment arm of Koch Industries. With additional investments managed by BlackRock, a leading global asset manager, this extension elevates the Series D round to a substantial $274 million, pushing Dragos’s total funds raised to an impressive approximate of $440 million.
The industrial cybersecurity market has been rapidly expanding, and according to Frost & Sullivan, it is projected to reach a staggering $10.2 billion by 2025, displaying exponential growth with a compound annual growth rate (CAGR) of 25.3 percent from $3.3 billion in 2020.
The newly acquired funding will be pivotal in supporting various go-to-market initiatives, meeting the escalating demand for cybersecurity solutions. Additionally, it will fuel accelerated expansion in key growth markets such as North America, Europe, the Middle East, and the Asia-Pacific region. Industries across electric, oil & gas, chemical, manufacturing, pharmaceutical, food and beverage, water, transportation, mining, and building automation will benefit from these expansions.
Robert M. Lee, Chief Executive Officer and Co-Founder of Dragos, emphasized the continued strong demand for OT cybersecurity. He stated, “Demand for OT cybersecurity continues to be strong and this extension allows us to scale. What’s really exciting is that WestCap, as lead investor, is a partner in our success and shares our commitment to build the collective defense to protect industrial organizations and the communities they serve.”
Dragos has been actively expanding its footprint, having already made significant inroads into Western Europe and the DACH region, building on its established presence in the UK.
The company further solidified its global reach by entering into an agreement with Macnica, enhancing its cybersecurity solutions presence in Japan. This underscores Dragos’s strategic growth beyond its initial presence in Australia and New Zealand, exemplifying its commitment to fortify cybersecurity on a global scale.