US and Shanghai-based venture capital firm GGV Capital and WRVI Capital have anchored the $32-million Series B funding round in VDOO, an Israeli startup that provides security automation for embedded devices.
NTT Docomo, which joined the round based on earlier successful cooperation, MS&AD Ventures, an affiliate of MS&AD Insurance Group Holdings, 83North and Dell Technology Capital, and David Strohm, who led the company’s initial financing, also participated.
VDOO, which first raised $13 million in its Series A round in January led by 83 North, said it will use the fresh capital to increase the market adoption of its IoT security platform while expanding its technical capabilities.
According to the IoT forecast released by Ericsson, around 29 billion devices will be connected by 2022, of which around 18 billion will be related to IoT.
But these devices will be highly vulnerable and there is a reasonable chance they will be under a massive attack in the near future, according to VDOO co-CEO and co-founder Netanel Davidi.
“At a time when embedded devices already deployed in the field not only collect data but actually control our physical environment, affecting both business operations and our personal lives, it’s hard to imagine a future where all of these devices can be exploited,” he said.
VDOO, Davidi added, helps embedded device vendors worldwide increase the security level of any of their products by automatically analyzing the security gaps of each device, using the cloud or a closed local environment.
“Our vision is to make them more secure as we continue to build an automated security platform that meets the demands of an increasingly connected world,” he said.
During the last 18 months, VDOO said it has helped dozens of vendors address an aggregated total of 150 zero-day vulnerabilities and more than 100,000 security issues. These vulnerabilities could allow cyber criminals to takeover or completely destroy more than 1.5 billion devices, even when not connected to the internet, the company said.
VDOO will use the funds to accelerate product innovation in the form of automated analysis capabilities, including zero-day vulnerabilities detection, that enable device vendors to implement unprecedented security levels at scale, both for new and legacy devices.
Additionally, the round will fuel the expansion of a rapidly growing partner and distribution network, which already includes NTT, Macnica, DNP, and Fujisoft in Japan.
GGV Capital, the co-anchor in the Series B round, closed its new funds at $1.88 billion in October last year. The new funds include $1.36-billion in the firm’s main funds, GGV Capital VII and VII Plus, $460-million in GGV Discovery II focused on seed and early-stage opportunities, and $60-million in the GGV Capital VII Entrepreneurs Fund consisting largely of company founders as LPs.
GGV’s funding in VDOO, together with the company’s technology, entrepreneurs, and team will allow the startup “to maintain its leadership position” in IoT security and expand geographies while continuing to develop its technology, said GGV Capital managing partner Glenn Solomon.