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Dragos raises $110M Series C as demand to secure industrial systems soars
Cybersecurity firm Dragos has raised $110 million in its Series C, almost triple the amount that it raised two years ago in its last round.
Dragos was founded in 2016 to detect and respond to threats facing industrial control systems (ICS), the devices critical to the continued operations of power plants, water and energy supplies, and other critical infrastructure. The company’s threat detection platform — its moneymaker — helps companies with industrial control systems defend against hackers trying to get into important operational systems. Its platform kicks out hackers that could shut down manufacturing lines or control energy supply systems, while its research arm keeps tabs on the hackers that can break into these highly complex and segmented industrial networks in the first place.
The startup’s latest round was led by National Grid Partners and Koch Disruptive Technologies, with both firms adding a member each to Dragos’ board. The round also saw participation from Saudi Aramco Energy Ventures and Hewlett Packard Enterprise, as well as return investors Allegis Cyber, Canaan Partners, DataTribe, Energy Impact Partners and Schweitzer Engineering Labs.
This latest round of funding will help the company with its go-to-market efforts, as well as growing its customer support team with 30 staff and building up its sales and marketing team. Lee said the company’s priority had been to work on its threat platform, and less selling it.
About one-third of the company’s employees work in software engineering to build its threat platform.
Dragos founder and chief executive Robert Lee said the pandemic, which forced vast swathes of the world to work remotely from home under lockdown restrictions, served as a wake-up call for companies with critical infrastructure.
“When you’re talking about critical infrastructure sites and people’s utilities, you need to put your best foot forward on the tech first,” he said.
Many companies were already trying to adapt with the digital age, but Lee said many companies realized they had underinvested in ICS security.
A team photo of Dragos employees. Image Credits: Dragos
Based just outside Washington D.C., Dragos now has over 220 employees and will be adding more, close to doubling its headcount since last year, and adding new offices in Melbourne, Dubai and in the United Kingdom.
Lee said the U.K.’s transition out of the European Union would all but ensure that the new U.K. office could not serve as an EU hub for the company, but that it was necessary to “to go where the problems are.”
Another one of those places is Saudi Arabia, one of the world’s largest oil and gas producers, where Dragos has an office and now draws an investment. Saudi oil and gas manufacturing plants have been the target of several cyberattacks, including the Trisis malware in 2017 that shut down one of the kingdom’s biggest petrochemical plants. But the country has faced extensive criticism for its human rights record by international rights groups. Lee said the company works to protect infrastructure that serves civilians and has actively rejected military contracts that would fall afoul of those values. “I don’t want to put asterisks on that mission,” he said.
Lee told TechCrunch that the company has grown at a rapid pace since it was founded four years ago.
“Our goal was never to get acquired,” he said. Echoing remarks he made last year, Lee said that the company’s plan was to continue growing and investing in the problems that Dragos sees — with an eventual goal to take the company public. “But we’re not rushed,” he said.
“The hallmark of Dragos being successful won’t be a successful IPO,” said Lee. “The hallmark will be having validated and built the market large enough that there can be other companies that come behind us serving the other more niche aspects of the ICS market and building out the community, and making sure our infrastructure is safer.”
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Food robotics startup Karakuri unveils automated canteen, plus $8.4M investment led by firstminute
Last week I witnessed for myself how a new kind of robot really could — as sci-fi has been telling us for many years — create and serve us food. Today, Karakuri, a food robotics startup, unveils its first automated canteen to make meals: the “DK-One” robot. It’s also revealing an $8.4 million (£6.3 million) investment, led by firstminute capital, which includes funding from Hoxton Ventures, Taylor Brothers, Ocado Group and the U.K.’s government-backed Future Fund. It has now closed a total of £13.5 million in funding.
Karakuri’s robotic system has been initially designed to make breakfast bowls. But the technology will end up being employed in a large array of scenarios, including restaurants, canteens, buffets, hotels and supermarkets. Possibly even tending vertical farms. Its particular strength is in being able to create extremely tailor-made combinations of food, putting “personalized nutrition” within practical reach. Remember those movies where the food is tailored by a robot? That.
The post-COVID world is also highly likely to embrace this technology due to the robot’s inherent cleanliness and efficiency, compared to human-made food. That said, Karakuri is not positioned to replace humans but to augment them, taking on the boring and repetitive tasks which typically see kitchen staff have far more itinerant careers due to the sheer pressure of low-level jobs where a robot would be far more suitable.
The DK-One robot is Karakuri’s first pre-production machine, which uses the latest in robotics, sensing and control technologies. It’s capable of creating high-quality hot and cold meals, which maximize nutritional benefits, restaurant performance and minimize food waste.
Post COVID restrictions, further on-customer-site trials of the DK-One are expected to take place in the first half of 2021.
The DK-One robot zips around a circular enclosure at a rate of knots, each time measuring accurate portion sizes as determined by an app, where the customer can tailor to their tastes. It means anyone ordering something would be able to track the ingredients, nutrients, calories and quantity of literally every meal.
Up to 18 ingredients can be dispensed per installation, with each ingredient temperature controlled. It will dispense of any ingredient type, including wet, dry, soft or hard food onto plates, bowls or a range of meal containers.
Because it’s so accurate it therefore reduces food waste around portions and allows for real-time data on ingredients. The thin margins restaurateurs typically have could be improved by using such a robot in repetitive tasks, and means employees can be tasked with more complex and fruitful and fulfilling work. It’s also easily integrated into existing commercial kitchens.
Barney Wragg, CEO and co-founder of Karakuri, said in a statement: “This will be the first time we can use a pre-production machine to demonstrate the DK-One’s commercial and nutritional benefits in the real world and thus demonstrate our vision for the future of food.”
Karakuri was founded by Simon Watt and Wragg, two longtime friends and colleagues who previously worked together at ARM. In April 2018 the Founders Factory venture studio invested in Karakuri and Brent Hoberman joined the board as chairman (and is also listed as a co-founder).
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Ivanti has acquired security firms MobileIron and Pulse Secure
IT security software company Ivanti has acquired two security companies: Enterprise mobile security firm MobileIron and corporate virtual network provider Pulse Secure.
In a statement on Tuesday, Ivanti said it bought MobileIron for $872 million in stock — with 91% of the shareholders voting in favor of the deal — and acquired Pulse Secure from its parent company Siris Capital Group, but did not disclose the buying price.
The deals have now closed.
Ivanti was founded in 2017 after Clearlake Capital, which owned Heat Software, bought Landesk from private equity firm Thoma Bravo, and merged the two companies to form Ivanti. The combined company, headquartered in Salt Lake City, focuses largely on enterprise IT security, including endpoint, asset and supply chain management. Since its founding, Ivanti went on to acquire several other companies, including U.K.-based Concorde Solutions and RES Software.
If MobileIron and Pulse Secure seem familiar, both companies have faced their fair share of headlines this year after hackers began exploiting vulnerabilities found in their technologies.
Just last month, the U.K. government’s National Cyber Security Center published an alert that warned of a remotely executable bug in MobileIron, patched in June, allowing hackers to break into enterprise networks. U.S. Homeland Security’s cybersecurity advisory unit CISA said that the bug was being actively used by advanced persistent threat (APT) groups, typically associated with state-backed hackers.
Meanwhile, CISA also warned that Pulse Secure was one of several corporate VPN providers with vulnerabilities that have since become a favorite among hackers, particularly ransomware actors, who abuse the bugs to gain access to a network and deploy the file-encrypting ransomware.
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Google launches Android Enterprise Essentials, a mobile device management service for small businesses
Google today introduced a new mobile management and security solution, Android Enterprise Essentials, which, despite its name, is actually aimed at small to medium-sized businesses. The company explains this solution leverages Google’s experience in building Android Enterprise device management and security tools for larger organizations in order to come up with a simpler solution for those businesses with smaller budgets.
The new service includes the basics in mobile device management, with features that allow smaller businesses to require their employees to use a lock screen and encryption to protect company data. It also prevents users from installing apps outside the Google Play Store via the Google Play Protect service, and allows businesses to remotely wipe all the company data from phones that are lost or stolen.
As Google explains, smaller companies often handle customer data on mobile devices, but many of today’s remote device management solutions are too complex for small business owners, and are often complicated to get up-and-running.
Android Enterprise Essentials attempts to make the overall setup process easier by eliminating the need to manually activate each device. And because the security policies are applied remotely, there’s nothing the employees themselves have to configure on their own phones. Instead, businesses that want to use the new solution will just buy Android devices from a reseller to hand out or ship to employees with policies already in place.
Though primarily aimed at smaller companies, Google notes the solution may work for select larger organizations that want to extend some basic protections to devices that don’t require more advanced management solutions. The new service can also help companies get started with securing their mobile device inventory, before they move up to more sophisticated solutions over time, including those from third-party vendors.
The company has been working to better position Android devices for use in workplace over the past several years, with programs like Android for Work, Android Enterprise Recommended, partnerships focused on ridding the Play Store of malware, advanced device protections for high-risk users, endpoint management solutions, and more.
Google says it will roll out Android Enterprise Essentials initially with distributors Synnex in the U.S. and Tech Data in the U.K. In the future, it will make the service available through additional resellers as it takes the solution global in early 2021. Google will also host an online launch event and demo in January for interested customers.
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AI-tool maker Seldon raises £7.1M Series A from AlbionVC and Cambridge Innovation Capital
Seldon is a U.K. startup that specializes in the rarified world of development tools to optimize machine learning. What does this mean? Well, dear reader, it means that the “AI” that companies are so fond of trumpeting does actually end up working.
It has now raised a £7.1 million Series A round co-led by AlbionVC and Cambridge Innovation Capital . The round also includes significant participation from existing investors Amadeus Capital Partners and Global Brain, with follow-on investment from other existing shareholders. The £7.1 million funding will be used to accelerate R&D and drive commercial expansion, take Seldon Deploy — a new enterprise solution — to market and double the size of the team over the next 18 months.
More accurately, Seldon is a cloud-agnostic machine learning (ML) deployment specialist which works in partnership with industry leaders such as Google, Red Hat, IBM and Amazon Web Services.
Key to its success is that its open-source project Seldon Core has more than 700,000 models deployed to date, drastically reducing friction for users deploying ML models. The startup says its customers are getting productivity gains of as much as 92% as a result of utilizing Seldon’s product portfolio.
Alex Housley, CEO and founder of Seldon speaking to TechCrunch explained that companies are using machine learning across thousands of use cases today, “but the model actually only generates real value when it’s actually running inside a real-world application.”
“So what we’ve seen emerge over these last few years are companies that specialize in specific parts of the machine learning pipeline, such as training version control features. And in our case we’re focusing on deployment. So what this means is that organizations can now build a fully bespoke AI platform that suits their needs, so they can gain a competitive advantage,” he said.
In addition, he said Seldon’s open-source model means that companies are not locked-in: “They want to avoid locking as well they want to use tools from various different vendors. So this kind of intersection between machine learning, DevOps and cloud-native tooling is really accelerating a lot of innovation across enterprise and also within startups and growth-stage companies.”
Nadine Torbey, an investor at AlbionVC, added: “Seldon is at the forefront of the next wave of tech innovation, and the leadership team are true visionaries. Seldon has been able to build an impressive open-source community and add immediate productivity value to some of the world’s leading companies.”
Vin Lingathoti, partner at Cambridge Innovation Capital, said: “Machine learning has rapidly shifted from a nice-to-have to a must-have for enterprises across all industries. Seldon’s open-source platform operationalizes ML model development and accelerates the time-to-market by eliminating the pain points involved in developing, deploying and monitoring machine learning models at scale.”
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Ride Vision raises $7M for its AI-based motorcycle safety system
Ride Vision, an Israeli startup that is building an AI-driven safety system to prevent motorcycle collisions, today announced that it has raised a $7 million Series A round led by crowdsourcing platform OurCrowd. YL Ventures, which typically specializes in cybersecurity startups but also led the company’s $2.5 million seed round in 2018, Mobilion VC and motorcycle mirror manufacturer Metagal also participated in this round. The company has now raised a total of $10 million.
In addition to this new funding round, Ride Vision also today announced a new partnership with automotive parts manufacturer Continental .
“As motorcycle enthusiasts, we at Ride Vision are excited at the prospect of our international launch and our partnership with Continental,” Uri Lavi, CEO and co-founder of Ride Vision, said in today’s announcement. “This moment is a major milestone, as we stride toward our dream of empowering bikers to feel truly safe while they enjoy the ride.”
The general idea here is pretty straightforward and comparable with the blind-spot monitoring system in your car. Using computer vision, Ride Vision’s system, the Ride Vision 1, analyzes the traffic around a rider in real time. It provides forward collision alerts and monitors your blind spot, but it can also tell you when you’re following another rider or car too closely. It can also simply record your ride and, coming soon, it’ll be able to make emergency calls on your behalf when things go awry.
As the company argues, the number of motorcycles (and other motorized two-wheeled vehicles) has only increased during the pandemic, as people started avoiding public transport and looked for relatively affordable alternatives. In Europe, sales of two-wheeled vehicles increased by 30% during the pandemic.
The hardware on the motorcycle itself is pretty straightforward. It includes two wide-angle cameras (one each at the front and rear), as well as alert indicators on the mirrors, as well as the main computing unit. Ride Vision has patents on its human-machine warning interface and vision algorithms.
It’s worth noting that there are some blind-spot monitoring solutions for motorcycles on the market already, including those from Innovv and Senzar. Honda also has patents on similar technologies. These do not provide the kind of 360-degree view that Ride Vision is aiming for.
Ride Vision says its products will be available in Italy, Germany, Austria, Spain, France, Greece, Israel and the U.K. in early 2021, with the U.S., Brazil, Canada, Australia, Japan, India, China and others following later.
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‘Resident Evil’ game maker Capcom confirms data breach after ransomware attack
Capcom, the Japanese game maker behind the “Resident Evil” and “Street Fighter” franchises, has confirmed that hackers stole customer data and files from its internal network following a ransomware attack earlier in the month.
That’s an about-turn from the days immediately following the cyberattack, in which Capcom said it had no evidence that customer data had been accessed.
In a statement, the company said data on as many as 350,000 customers may have been stolen, including names, addresses, phone numbers and, in some cases, dates of birth. Capcom said the hackers also stole its own internal financial data and human resources files on current and former employees, which included names, addresses, dates of birth and photos. The attackers also took “confidential corporate information,” the company said, including documents on business partners, sales and development.
Capcom said that no credit card information was taken, as payments are handled by a third-party company.
But the company warned that the overall amount of data stolen “cannot specifically be ascertained” due to losing its own internal logs in the cyberattack.
Capcom apologized for the breach. “Capcom offers its sincerest apologies for any complications and concerns that this may bring to its potentially impacted customers as well as to its many stakeholders,” the statement read.
The video games maker was hit by the Ragnar Locker ransomware on November 2, prompting the company to shut down its network. Ragnar Locker is a data-stealing ransomware, which exfiltrates data from a victim before encrypting its network, and then threatens to publish the stolen files unless a ransom is paid. In doing so, ransomware groups can still demand a company pays the ransom even if the victim restores their files and systems from backups.
Ragnar Locker’s website now lists data allegedly stolen from Capcom, with a message implying that the company did not pay the ransom.
Capcom said it had informed data protection regulators in Japan and the United Kingdom, as required under European GDPR data breach notification rules. Companies can be fined up to 4% of their annual revenue for falling foul of GDPR rules.
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Alibaba passes IBM in cloud infrastructure market with over $2B in revenue
When Alibaba entered the cloud infrastructure market in earnest in 2015 it had ambitious goals, and it has been growing steadily. Today, the Chinese e-commerce giant announced quarterly cloud revenue of $2.194 billion. With that number, it has passed IBM’s $1.65 billion revenue result (according to Synergy Research market share numbers), a significant milestone.
But while $2 billion is a large figure, it’s one worth keeping in perspective. For example, Amazon announced $11.6 billion in cloud infrastructure revenue for its most recent quarter, while Microsoft’s Azure came in second place with $5.9 billion.
Google Cloud has held onto third place, as it has for as long as we’ve been covering the cloud infrastructure market. In its most recent numbers, Synergy pegged Google at 9% market share, or approximately $2.9 billion in revenue.
While Alibaba is still a fair bit behind Google, today’s numbers puts the company firmly in fourth place now, well ahead of IBM . It’s doubtful it could catch Google anytime soon, especially as the company has become more focused under CEO Thomas Kurian, but it is still fairly remarkable that it managed to pass IBM, a stalwart of enterprise computing for decades, as a relative newcomer to the space.
The 60% growth represented a slight increase from the previous quarter’s 59%, but basically means it held steady, something that’s not easy to do as a company reaches a certain revenue plateau. In its earnings call today, Daniel Zhang, chairman and CEO at Alibaba Group, said that in China, which remains the company’s primary market, digital transformation driven by the pandemic was a primary factor in keeping growth steady.
“Cloud is a fast-growing business. If you look at our revenue breakdown, obviously, cloud is enjoying a very, very fast growth. And what we see is that all the industries are in the process of digital transformation. And moving to the cloud is a very important step for the industries,” Zhang said in the call.
He believes eventually that most business will be done in the cloud, and the growth could continue for the medium term, as there are still many companies that haven’t made the switch yet, but will do so over time.
John Dinsdale, an analyst at Synergy Research, says that while China remains its primary market, the company does have a presence outside the country too, and can afford to play the long game in terms of the current geopolitical situation with trade tensions between the U.S. and China.
“Alibaba has already made some strides outside of China and Hong Kong. While the scale is rather small compared with its Chinese operations, Alibaba has established a data center and cloud presence in a range of countries, including six more APAC countries, U.S., U.K. and UAE. Among these, it is the market leader in both Indonesia and Malaysia,” Dinsdale told TechCrunch.
In its most recent data released a couple of weeks ago, prior to today’s numbers, Synergy broke down the market this way: “Amazon 33%, Microsoft 18%, Google 9%, Alibaba 5%, IBM 5%, Salesforce 3%, Tencent 2%, Oracle 2%, NTT 1%, SAP 1% – to the nearest percentage point.”
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Psykhe secures seed funding to match consumer personalities to fashion products
In an overcrowded market of online fashion brands, consumers are spoilt for choice on what site to visit. They are generally forced to visit each brand one by one, manually filtering down to what they like. Most of the experience is not that great, and past purchase history and cookies aren’t much to go on to tailor user experience. If someone has bought an army-green military jacket, the e-commerce site is on a hiding to nothing if all it suggests is more army-green military jackets…
Instead, Psycke (it’s brand name is “PSYKHE”) is an e-commerce startup that uses AI and psychology to make product recommendations based both on the user’s personality profile and the ‘personality” of the products. Admittedly, a number of startups have come and gone claiming this, but it claims to have taken a unique approach to make the process of buying fashion easier by acting as an aggregator that pulls products from all leading fashion retailers. Each user sees a different storefront that, says the company, becomes increasingly personalized.
It has now raised $1.7 million in seed funding from a range of investors and is announcing new plans to scale its technology to other consumer verticals in the future in the B2B space.
The investors are Carmen Busquets, the largest founding investor in Net-a-Porter; SLS Journey, the new investment arm of the MadaLuxe Group, the North American distributor of luxury fashion; John Skipper, DAZN chairman and former co-chairman of Disney Media Networks and president of ESPN; and Lara Vanjak, chief operating officer at Aser Ventures, formerly at MP & Silva and FC Inter-Milan.
So what does it do? As a B2C aggregator, it pools inventory from leading retailers. The platform then applies machine learning and personality-trait science, and tailors product recommendations to users based on a personality test taken on sign-up. The company says it has international patents pending and has secured affiliate partnerships with leading retailers that include Moda Operandi, MyTheresa, LVMH’s platform 24S and 11 Honoré.
The business model is based around an affiliate partnership model, where it makes between 5-25% of each sale. It also plans to expand into B2B for other consumer verticals in the future, providing a plug-in product that allows users to sort items by their personality.
How does this personality test help? Well, Psykhe has assigned an overall psychological profile to the actual products themselves: over 1 million products from commerce partners, using machine learning (based on training data).
So for example, if a leather boot had metal studs on it (thus looking more “rebellious”), it would get a moderate-low rating on the trait of “Agreeableness”. A pink floral dress would get a higher score on that trait. A conservative tweed blazer would get a lower score tag on the trait of “Openness”, as tweed blazers tend to indicate a more conservative style and thus nature.
So far, Psykhe’s retail partnerships include Moda Operandi, MyTheresa, LVMH’s platform 24S, Outdoor Voices, Jimmy Choo, Coach and size-inclusive platform 11 Honoré.
Its competitors include The Yes and Lyst. However, Psykhe’s main point of differentiation is this personality scoring. Furthermore, The Yes is app-only, U.S.-only, and only partners with monobrands, while Lyst is an aggregator with 1,000s of brands, but used as more of a search platform.
Psykhe is in a good position to take advantage of the ongoing effects of COVID-19, which continue to give a major boost to global e-commerce as people flood online amid lockdowns.
The startup is the brainchild of Anabel Maldonado, CEO & founder, (along with founding team CTO Will Palmer and lead Data Scientist, Rene-Jean Corneille, pictured above), who studied psychology in her hometown of Toronto, but ended up working at the U.K.’s NHS in a specialist team that made developmental diagnoses for children under 5.
She made a pivot into fashion after winning a competition for an editorial mentorship at British Marie Claire. She later went to the press department of Christian Louboutin, followed by internships at the Mail on Sunday and Marie Claire, then spending several years in magazine publishing before moving into e-commerce at CoutureLab. Going freelance, she worked with a number of luxury brands and platforms as an editorial consultant. As a fashion journalist, she’s contributed industry op-eds to publications such as The Business of Fashion, T: The New York Times Style Magazine and Marie Claire.
As part of the fashion industry for 10 years, she says she became frustrated with the narratives which “made fashion seem more frivolous than it really is. “I thought, this is a trillion-dollar industry, we all have such emotional, visceral reactions to an aesthetic based on who we are, but all we keep talking about is the ‘hot new color for fall and so-called blanket ‘must-haves’.”
But, she says, “there was no inquiry into individual differences. This world was really missing the level of depth it deserved, and I sought to demonstrate that we’re all sensitive to aesthetic in one way or another and that our clothing choices have a great psychological pay-off effect on us, based on our unique internal needs.” So she set about creating a startup to address this “fashion psychology” – or, as she says “why we wear what we wear”.
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E-bike subscription service Dance closes $17.7M Series A, led by HV Holtzbrinck Ventures
Three months on since the former founders of SoundCloud launched their e-bike subscription service, Dance today is announcing the close of a $17.7 million (€15 million) Series A funding round led by one of the larger European VCs, HV Holtzbrinck Ventures.
Founded by Eric Quidenus-Wahlforss (ex-SoundCloud), Alexander Ljung (still at SoundCloud as chairman) and Christian Springub (ex-Jimdo), Dance has ambitions to offer its all-inclusive service subscription package into expanded markets across Europe and eventually the U.S. Dance is currently operating the invite-only pilot of its e-bike subscription in Berlin, with plans for a broader launch, expanded accessibility and availability and new cities next year.
Rainer Märkle, general partner at HV Holtzbrinck Ventures, said in a statement: “The mobility market is seeing a huge shift towards bikes, strongly fueled by the paradigm shift of vehicles going electric. Unfortunately, the majority of e-bikes on the market today have some combination of poor design, high upfront costs, and cumbersome maintenance. We analyzed the overall mobility market, evaluated all means of transport, and crunched the numbers on all types of business models for a few years before we found what we were looking for. Dance is by the far the most viable future of biking, bridging the gap between e-bike ownership and more ‘joyful’ accessibility to go places.”
E-bikes tend to be notoriously expensive to purchase and a hassle to repair. That said, startups like VanMoof and Cowboy have brought an Apple -esque business model to the market, which is fast bringing the cost of full ownership down.
Most commuters are put off cycling the average 10 kilometers (6.2 miles) commute but e-bikes make this distance a breeze. Dance sits in that half-way house between owning an expensive bike and having to hunt down a rentable e-bike or electric scooter close to your location.
Additionally, the COVID-19 pandemic has brought individual, socially distanced transport into sharp relief. U.K. sales of e-bikes have boomed, seeing a 230% surge in demand over the summer. This has happened at the same time as EU governments have put in more than 2300 km of bike lanes, with the U.K. alone pledging £250 million in investment.
Quidenus-Wahlforss said the startup has been “inundated with positive responses from around the world since we announced our invite-only pilot program.”
Dance’s subscription model includes a fully assembled e-bike delivered to a subscriber’s door within 24 hours. This comes with maintenance, theft replacement insurance, a dedicated smartphone app, concierge services, GPS location tracking and unlocking capabilities.
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