Israel-based IoT cybersecurity software startup ShieldIoT said it has closed a $7.4 million funding round led by NextLeap Ventures and Bloc Ventures.
Founded in 2017, ShieldIoT addresses the escalating proliferation of IoT cyber threats to devices, data, critical services and infrastructure. It has its own unique coreset technology for anomaly detection in IoT. Based on over 15 years of academic research and 50 academic papers, its coreset-AI patented technology claims to revolutionize IoT mass-volume data analysis through a transformation of big data into small datasets. Professor Dan Feldman, chief scientist at Shield-IoT, said, “Coresets compress the data from n to log(n), or from 1 million to 20 data points, enabling context-free highly accurate anomaly detection in minutes instead of hours or days.”
There are already many good and available (off-the-shelf) artificial intelligence / machine learning anomaly detection algorithms. However, the challenge is that as IoT networks become larger and larger, with hundreds of thousands and even millions of devices, using these anomaly detection algorithms on large datasets can take hours and even days, which is not an option in case of an IoT cyber-attack that can take down key physical services, cause significant financial damage and even loss of life. These existing solutions that are not using coresets are forced to perform various heuristics on the data (since they can’t analyze it as it’s too big) resulting in very high levels of false alarms (in some cases over 95% false).
In contrast, ShieldIoT said by running coresets before applying the existing best of breed AI/ML anomaly detection algorithms, the company is able to reach optimal results in minutes (vs. hours/days) as it is running on much smaller data. These optimal results include significant lower false alarms levels (false positives) as well as improved detection rates (true positives).
Currently in use across multiple verticals including telcos, utilities, transportation, manufacturing, smart cities, and government, ShieldIoT said it offers a simple-to-deploy and easy- to-operate cloud-based software solution to protect any IoT device or application with no changes to end customer networks. With Shield-IoT, service providers and IoT brands can monitor and secure their mass-scale B2B IoT and IIoT networks, reduce operational costs, and generate new revenue streams with value-added services.
This latest funding round, which takes the company’s total funding to $11 million, was led by NextLeap Ventures and Bloc Ventures, with participation of Atlas Ventures, Akamai Technologies, Springtide Ventures, DIVEdigital and Janvest Capital Partners.
NextLeap Ventures was founded in 2017 to invest in early-stage Israeli deep tech startups that will solve major global challenges, leveraging the community of Intel, the largest private employer and incubator in the Israeli tech ecosystem in Israel. NextLeap Ventures’ partners are split between Israel and the US. Bloc Ventures is a U.K. based venture capital investor founded by ex-Arm and Vodafone executives and specializing in European deep tech, focused on growing the next generation of European technology businesses at the forefront of telecommunications and computing.
The chief strategist at Akamai Technologies, Ramanath Mallikarjuna, commented, “ShieldIoT’s innovative approach to anomaly detection enables Akamai to provide accurate analytics at mass-scale. Akamai is collaborating with ShieldIoT on innovative solutions to enhance cybersecurity and operational monitoring for customers of Akamai’s IoT solutions.”
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