Industrial systems cybersecurity company Claroty raises $60M Series B led by Singapore's Temasek, bringing total investment to $93M
Zaid Shoorbajee / Cyberscoop :
Context & Ripple Effects
In mid-2018, Claroty's $60M Series B more than doubled its lifetime funding to $93M, and the lead investor is the notable part: Singapore's Temasek, a sovereign investor making its first big move into industrial (OT) security. Within months, Temasek followed up by acquiring Israeli incident-response firm Sygnia for a reported $250M, signaling a deliberate portfolio build rather than a one-off check.
The bet aged well. Claroty went on to raise a $140M Series D in 2021, then a $400M round alongside its $400M Medigate acquisition at a reported ~$2B valuation, a $100M pre-IPO round at an estimated $2.5B with $100M ARR, and most recently a $150M Series F at a reported $3B — while Temasek's ISTARI arm separately led risk-modeling startup Axio's $23M Series B.
First-order effects
- Temasek takes a lead position in one of the few startups focused specifically on securing industrial control systems, giving Claroty capital and a sovereign-backed foothold in Asian markets where such systems are heavily concentrated.
- Claroty's founders gain runway to scale beyond its existing footprint ahead of rivals in operational-technology security, at a time when total company funding sits at just $93M.
Second-order effects
- Competing industrial-security vendors now face a rival armed with sovereign wealth backing, pushing them toward their own large rounds or strategic buyers to keep pace.
- Temasek's move foreshadows consolidation logic in Israeli cybersecurity: rather than picking only one winner, it layered direct stakes (Claroty, later Axio via ISTARI) with outright acquisitions like Sygnia.
Third-order effects
- If the pattern holds, sovereign wealth funds become structural owners of critical-infrastructure security vendors — a shift with regulatory implications when state investors hold the tools protecting other states' power grids and hospitals.
- Claroty's trajectory from a $93M-total Series B to reported $3B valuations illustrates how OT security matured from niche concern to board-level category, with hospital and manufacturing exposure expanding the addressable market well past traditional industrial buyers.
The trend: Sovereign investors like Temasek are systematically accumulating positions across the industrial-cybersecurity stack, turning Israeli OT-security startups into multi-billion-dollar platform companies.