Cybeats raises seed round of investment led by iNovia Capital to create ‘immune system’ for IoT devices
Cybersecurity company Cybeats, which provides continuous cyber defence solution for Enterprise IoT infrastructure, announced it has raised a seed round of investment from iNovia Capital, Maple Leaf Angels (MLA48 II), and cybersecurity industry insiders Dr. Richard Reiner, Brian O’Higgins, and Brian Bourne.
“iNovia is excited to invest in Cybeats and its brilliant team, alongside a great group of investors. IoT and cybersecurity is a space that we have been looking into for a while, we believe Cybeats’ technology is solving a real problem, with the potential to become a global leader in the space”, says Magaly Charbonneau, principal at iNovia Capital.
“Maple Leaf Angels is pleased to participate in this round with iNovia, Richard and other angels, through its MLA48 Fund II. The cyber security problem is a growing global issue, particularly in IoT devices. We believe that Cybeats has the right team and technology to tackle this problem,” said managing director, Prathna Ramesh.
Brian Bourne added, “The Cybeats team has built a unique, efficient and highly effective solution to the IoT security problem. They have developed their technology with a keen eye to the needs of enterprise and I am excited to be involved with such a talented team.”
“IoT essentially equips the internet with arms and legs, and brings about a whole new level of concern with safety and security. New technology is needed to address the problem, and Cybeats is right on course to deliver solutions” said Brian O’Higgins.
New chairman for Cybeats
Cybeats is also announcing that Dr. Reiner, a renowned serial cybersecurity entrepreneur and executive with a long string of successful exits, is joining as chairman of the company. Dr. Reiner brings to Cybeats many years of experience at the cutting edge of the cybersecurity industry – his insights will enable Cybeats to better identify business opportunities in the IoT cybersecurity market and to deliver better products faster.
“Cybeats solves a critical problem for enterprises deploying IoT technology, and for the manufacturers of these devices”, said Dr. Reiner. “IoT devices, until now, have been vulnerable and easy targets for hackers. Cybeats protects IoT devices throughout their lifecycle, so enterprises can benefit from the value of IoT technologies without increasing their risk profile.”
The funding will be used to scale Cybeats’ sales team, to further develop new Artificial Intelligence and Machine Learning capabilities for the Cybeats platform, and to expand the company’s services into APAC and EU markets. Cybeats builds an immune system-like cybersecurity software for Enterprise IoT (EoT), Industrial IoT (IIoT), and Critical Infrastructure IoT devices, such as those used in energy grids.
Taking an “inside out” approach to cybersecurity, Cybeats’ software is embedded into the devices to provide continuous protection, allowing devices to detect the most sophisticated threats instantly and gather data to help security professionals neutralise them. Cybeats’ Cloud service then analyses data from the infected device, and provides a full threat diagnosis and treatment plan.
With an estimated 50 billion connected devices by the year 2020, the Internet of Things (IoT) is quickly becoming an integral part of our world. But with the increased opportunity the IoT brings, so too come a multitude of new threats to cybersecurity – recent examples include a vulnerability in Intel’s processor chips allowing an attacker to access kernel memory and dump data, including passwords and encryption keys.
Out of the billions of newly connected IoT devices, 70% of the most commonly used contain vulnerabilities, meaning an exponentially larger number of access points that need to be safeguarded from cyber criminals. With all these vulnerabilities, Cybeats believes the future of IoT protection in the global connected age will function similarly to how our own bodies detect, analyse and treat infections. Cybeats’ microagent is embedded into the devices to provide continuous protection, allowing devices to detect the most sophisticated threats instantly and gather data to help security professionals neutralise them.
As vanguards of the “Industry 4.0” trend – the revolutionary changes in automation and data exchange within manufacturing technologies – European nations will rely on innovations in data privacy and cybersecurity; and this demand is all the more urgent given that each nation must demonstrate compliance with the EU’s new General Data Protection Regulation (GDPR) this year.
South Korea, meanwhile, is where much of the R&D for Chinese-manufactured IoT devices is headquartered. Both regions are therefore of strategic importance to the IoT industries.
“I am thrilled by the generous support from our investors and their commitment validates our mission to provide a true cyber immune system for industrial, critical infrastructure and Enterprise IoT companies,” said CEO and co-founder Dmitry Raidman about the investment. Cybeats is a member of the L-SPARK accelerator, which gives early stage Canadian SaaS companies the tools to scale their businesses.
L-Spark’s executive managing director Leo Lax added, “We are pleased Cybeats has achieved this next step in their growth. The timing is right for a SaaS opportunity like this one to serve the IoT and connected devices market. This talented team is now well equipped with support from leading Canadian investors as well as continued mentorship from the L-SPARK team to scale into a globally competitive firm.”