Dragos, an operational technology (OT) security firm based in Baltimore, is set to expand its operations in Europe and Asia with a $74 million investment from a Series D extension round.
Furthermore, this funding will allow Dragos to address enhanced OT security regulations imposed by regulators and required by cyber insurance providers. The expansion into the European Union is prompted by updated cybersecurity directives affecting smaller organizations, and Dragos aims to provide its technology solutions to these entities. Additionally, the growing threat of ransomware has led cyber insurance providers to mandate the use of tools like those offered by Dragos.
Led by WestCap, a late-stage startup funding specialist, this investment follows a $200 million Series D round secured by Dragos 23 months prior. Despite economic challenges, the funding maintains the company’s valuation at $1.7 billion. Dragos is strategically expanding into diverse markets, recognizing that the European Union’s NIS2 Directive covers a broader range of sectors than the U.S. statute for industrial cybersecurity, with an effective date set for October 2024.
To cater to continental Europe, Dragos has established a physical presence in Germany and is targeting opportunities in Singapore to bolster the country’s OT cybersecurity posture.
Dragos plans to hire various roles in Europe, including industrial consultants, technical resources, architects, and intelligence staff to meet regional needs. While the company had previously laid off staff, it is now actively recruiting in international markets to seize opportunities.
By collaborating closely with cyber insurance providers and offering trusted mitigation services, Dragos aims to make organizations more insurable and reduce insurance premiums through its detection capabilities.
The funding will also support the development of new technologies in areas such as the electricity sector and data center management while maintaining growth and profitability targets. Dragos envisions at least one more funding round before considering an initial public offering to become a global leader in OT security.
