Press release

VDOO Raises $32M in Series B Financing to Revolutionize Security for Embedded Devices and IoT

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Sponsored by Businesswire

VDOO Connected Trust Ltd., a pioneer in security automation for embedded
devices, today announced it raised $32 million in Series B funding led
by venture capital firms WRVI Capital and GGV Capital, with
participation from NTT DOCOMO, which joined the round based on earlier
successful cooperation, MS&AD Ventures, an affiliate of a global cyber
insurance firm, and strategic individual investor Mr. Avigdor Willenz,
Founder of Galileo Technologies and Annapurna Lab. 83North, Dell
Technology Capital and David Strohm, who led the company’s initial
financing, also participated in the B round.

The funding will enable VDOO to increase market adoption of its IoT
security platform while also expanding its technical capabilities, as
the company sets its sight on becoming the industry’s first end-to-end
security solution for embedded devices of any type. This round brings
the company’s total funding to $45M.

“At a time when embedded devices already deployed in the field not only
collect data but actually control our physical environment, affecting
both business operations and our personal lives, it’s hard to imagine a
future where all of these devices can be exploited,” said Netanel
Davidi, Co-CEO and Co-Founder of VDOO. “The reality is that devices are
highly vulnerable and there is a reasonable chance they will be under a
massive attack in the near future. Our vision is to make them more
secure as we continue to build an automated security platform that meets
the demands of an increasingly connected world. Corporations,
standardization bodies, regulators and cyber insurers all understand
that it’s time for a change and that security for the connected
environment is essential. The funding will enable us to accelerate
market education by working closely with these bodies to make a
significant change in approach to embedded devices security.”

The funds will be used to accelerate product innovation in the form of a
comprehensive set of automated analysis capabilities, including zero-day
vulnerabilities detection, that enable device vendors to implement
unprecedented security levels at scale, both for new and legacy devices.
In addition, the round will fuel the expansion of a rapidly growing
partner and distribution network, which already includes NTT, Macnica,
DNP and Fujisoft in Japan. VDOO’s partners help IoT makers easily secure
their devices, address their customers’ security expectations, and
comply with emerging IoT regulatory actions and industry standards.

“Among all startups for embedded systems, VDOO is the first to introduce
a unique, holistic approach focusing on the device vendors which are the
focal enabler in truly securing devices,” said Lip-Bu Tan, Founding
Partner of WRVI Capital, a leading international venture firm focusing
on OEMs (Original Equipment Manufacturers) of embedded systems,
hardware, and software. “We are delighted to back VDOO’s technology, and
the exceptional team that has created advanced tools to allow vendors to
secure devices as much as possible without in-house security know-how –
for the first time in many decades, I see a clear demand for security,
as being raised constantly in many meetings with leading OEMs worldwide,
as well as software giants.”

“VDOO brings a unique end-to-end security platform, answering the global
connectivity trend and the emerging threats targeting embedded devices,
to provide security as an essential enabler of extensive connected
devices adoption. With its differentiated capabilities, VDOO has
succeeded in acquiring global customers, including many top-tier brands.
Moreover, VDOO’s ability to uncover and mitigate weaknesses created by
external suppliers fits perfectly into our Supply Chain Security
investment strategy,” said Glenn Solomon, Managing Partner at GGV
Capital. “This funding, together with the company’s great technology,
skilled entrepreneurs and one of the best teams we have seen, will allow
VDOO to maintain its leadership position in IoT security and expand
geographies while continuing to develop its state-of-the-art technology.”

VDOO’s automation platform enables IoT manufacturers to raise the
security bar in a scalable manner by implementing only device-specific
security requirements which include step by step guidance to help the
vendor mitigate the security threats in a cost-effective manner. The
security requirements are integrated into common task management and
development environments. On top of that, VDOO technology improves the
device’s security even more by automatically generating tailor-made
on-device micro-agents for active real-time protection against known and
unknown threats, including exploits that utilize advanced methods.

VDOO’s Research Impact

VDOO’s unique security automation technology leverages machine learning
capabilities to create a security profile for any embedded device by
defining its unique threat landscape, conducting designated penetration
testing and performing a complete security gap analysis – all in an
automated manner. The advanced capabilities are based on deep analysis
on a data set of 70M embedded systems’ binaries and more than 16K
versions of embedded systems.

During the last 18 months, VDOO has helped dozens of vendors address
an aggregated total of 150 zero-day vulnerabilities and more than 100K
security issues. These vulnerabilities could allow cyber criminals to
takeover or completely destroy more than 1.5B devices, even when not
connected to the internet.

The wide research shows that the embedded devices security problem is
not vertical specific as this dataset is comprised of firmware of
devices from multiple verticals – safety and security, smart buildings,
medical, industrial, automotive, enterprise appliances, telecom and
smart home.

Many of the vulnerable devices that VDOO identified are connected
directly to the internet and are widely spread across device types such
as video surveillance equipment and security cameras, with NVRs and DVRs
topping the list, followed by network elements such as gateways,
routers, switches, STBs, and modems.

Security issues were also found in IT and OT appliances such as NAS
servers, industrial control switches, printers, VoIP gateways and
conference extensions, as well as in fire alarms, PLCs, access control
and medical devices. Such devices were found to be exposed to
complicated attacks utilizing software vulnerability exploitation as
well as to basic attacks.

In the consumer sector, security issues were found in smart watches,
light bulbs, printers, tracking devices, smart TVs, personal alarms, and
many other popular smart home devices. Such devices were found to lack
the basic security building blocks such as traffic encryption, default
password change and boot process integrity.

Most of the devices analyzed by VDOO were vulnerable to Command
Injection and Command Execution attacks, followed by memory corruption
exploitation and common logic flaws. In addition, most of the devices
consisted of embedded credentials that were easy to decrypt in a few
hours.

The vulnerable devices can be exploited in a way that could enable
large-scale cyber-attacks that could disable an enterprise’s operations
and critical functions. This, in turn, may lead to loss of trust in IoT
devices, interfere with connected technologies adoption and prevent the
digital revolution from taking place. VDOO’s mission is to allow
security for the entire IoT ecosystem’s success.

About VDOO

VDOO helps embedded device vendors worldwide increase the security level
of any of their products by automatically analyzing the security gaps of
each device, using the cloud or a closed local environment. The
company’s advanced device attributes segmentation engine uses machine
learning to build actionable security requirements in less than one
hour, enabling vendors to take instant actions towards device hardening
and active runtime protection – using a single platform. Based in Tel
Aviv, the company has offices in the US and EMEA. Visit www.vdoo.com.

About WRVI Capital

WRVI Capital is a leading venture capital firm that invests in
exceptional entrepreneurs and disruptive technologies that will help
shape the future. Our management team and investment professionals
leverage over 400 years of accumulated investment and operational
experience and bring to our portfolio companies a deep and unmatched
network of value added strategic relationships. WRVI Capital invests
globally and has offices in California, Israel, India and China. For
further information, please visit www.wrvi.vc.

About GGV Capital

GGV Capital is a global venture capital firm that invests in local
founders. As a multi-stage, sector-focused firm, GGV focuses on
seed-to-growth stage investments across Consumer/New Retail,
Social/Digital & Internet, Enterprise/Cloud and Frontier Tech sectors.
The firm was founded in 2000 and manages $6.2 billion in capital across
13 funds. Past and present portfolio companies include Affirm, Airbnb,
Alibaba, Bitsight, ByteDance (Toutiao), Ctrip, Didi Chuxing, Grab,
Gladly, Hello Chuxing, HashiCorp, Houzz, Keep, LingoChamp, Namely, Niu,
Nozomi Networks, Opendoor, Peloton, Poshmark, Slack, Square, Wish,
Xauto, Xiaohongshu, Yellow, YY, Zhaoyou and more. Learn more at www.ggvc.com.

About NTT DOCOMO Ventures

NTT DOCOMO, Japan’s leading mobile operator with over 77 million
subscriptions, is one of the world’s foremost contributors to mobile
network technologies. Beyond core communications services, DOCOMO is
challenging new frontiers in collaboration with a growing number of
entities, creating exciting and convenient value-added services that
change the way people live and work. Under a medium-term plan toward
2020 and beyond, DOCOMO is pioneering a leading-edge 5G network to
facilitate innovative services that will amaze and inspire customers
beyond their expectations. DOCOMO is listed on the Tokyo Stock Exchange
(9437). Visit www.nttdocomo-v.com.

About MS&AD Ventures

MS&AD Ventures, a corporate venture capital firm set up by MS&AD
Insurance Group Holdings as its affiliated company, seeks to invest in
venture companies that may lead to new business models and technologies,
enabling MS&AD group to establish a competitive advantage as an
innovation leader across different markets and global territories. MS&AD
partners with Group companies to develop unique products and services
utilizing both the Group strengths and innovative business models and
technologies from startups in the MS&AD Ventures portfolio. Visit www.msad.vc.