Axonius raises $58 million to automate device security management

Axonius, a cybersecurity startup developing an end-to-end device management platform, today announced that it has secured $58 million in equity financing. Cofounder and CEO Dean Sysman said that the new capital will be used to expand Axonius’ cybersecurity asset management platform offerings, which is fortuitous — according to Symantec, internet of things devices experience an average of 5,200 attacks per month.

“Our exponential growth in revenue and customers can be attributed to the fact that we’re solving a problem that companies of all sizes and industries face across the globe. The opportunity is massive, and this new funding round will allow us to continue to aggressively invest in our platform,” Sysman told VentureBeat via email. “We have a big vision at Axonius, and we’re here to stay. We’re focused on building a formidable, independent, pure-play cybersecurity company that can solve the asset management challenge once and for all, and let security and IT teams get back to focusing on what’s important.”

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 to 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 bolstered further 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 benchmarks is CIS Benchmarks, a set of continuously verified best practices for securing systems and data against attack.

Investors like Arsham Memarzadeh — general partner at Lightspeed Venture Partners, which led this funding round — believe that these and other features put Axonius leagues ahead of rivals like 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. In any case, Axonius currently covers millions of devices for customers including New York Times, Schneider Electric, Landmark Health, and AppsFlyer. And with an eye toward growth, in February the company expanded its platform for use by federal agencies.

Axonius, which was founded in 2017, has offices in New York and Tel Aviv. Its latest fundraising round — a series C funding — was led by Lightspeed Venture Partners with participation from existing investors OpenView, Bessemer Venture Partners, YL Ventures, Vertex, and WTI. It brings Axonius’ total raised to $95 million following a $20 million series B in August 2019 and a $13 million series A last February, and it comes after a banner year in which the company’s customer base grew 910% and the size of its team doubled.