Axonius raises $100 million to protect IoT devices from cyberattacks

Axonius, a cybersecurity startup developing an end-to-end device management platform, today announced it has raised $100 million in series D funding, valuing the company at over $1 billion post-money. Axonius says it will use the round to scale growth globally and expand its platform to meet market demand.

By 2020, Gartner predicts there will be more than 20 billion connected devices globally — a number that has some executives worried. In a recent survey conducted by Spiceworks, 90% of IT professionals expressed concern that the influx would create security and privacy issues in the workplace. And in a separate study commissioned by eSecurity Planet, 31% of internet of things (IoT) developers said they considered the software or firmware for connected devices the greatest “trouble spot” for cybersecurity.

Axonius’ agentless solution streamlines asset management and spotlights coverage gaps by automatically validating and enforcing security policies. It connects with existing software and networking gear to build an inventory of assets that spans cloud and on-premises environments, whether the devices are managed or unmanaged.

Axonius supports one-off and ongoing queries that help illustrate how assets relate to security policies, and it packs in trigger functionality that enables the programming of rules that kick off enforcement responses like software installs and device scans. Its cybersecurity capabilities are further bolstered by support for third-party apps and services. Axonius integrates with over 200 platforms, including Active Directory and cloud instances like Amazon, as well as endpoint protection tools, NAC solutions, mobile device management, VA scanners, and more.

For instance, the company’s recently launched Cloud Asset Compliance service leverages data from public cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud to automatically determine how cloud workload, configuration details, and accounts comply with industry security benchmarks. One of those is CIS Benchmarks, a set of continuously verified best practices for securing systems and data against attack.

Axonius counts among its rivals Zededa, which raised $15.9 million in February; Armis Security, which secured $65 million in April; Vdoo, which recently nabbed $32 million; and Mocana, which raised $15 million in March. Axonius currently covers millions of devices for customers, including the New York Times, Schneider Electric, Landmark Health, and AppsFlyer. With an eye toward growth, in February the company expanded its platform for use by federal agencies.

But Axonius claims it took less than 15 months to grow from $1 million in annual recurring revenue to $10 million. In 2020, it doubled its staff and achieved triple-digit growth.

Axonius, which was founded in 2017, has offices in New York and Tel Aviv. Stripes and Lightspeed Venture Partners led the company’s latest round, with participation from existing investors OpenView, Bessemer Venture Partners, YL Ventures, Vertex, and WTI. The raise follows a $58 million round in March 2020 and brings the company’s total funding to $195 million.