Claroty, which protects industrial systems, raises $400M led by Vision Fund 2 and others, source says at a ~$2B valuation, and acquires Medigate for $400M
Worried that cyberattacks are “a threat to humanity,” the New York startup claims it's the best-funded company in its field thanks …
Context & Ripple Effects
Claroty has been on a funding escalator since exiting stealth in 2016: a $60M Series B led by Temasek in 2018, then a $140M Series D just six months before this round brought its total raised to $235M ahead of a planned IPO. Today's $400M raise at a reported ~$2B valuation — led by Vision Fund 2 — more than doubles that total in a single step, which is why the company claims to be the best-funded player in industrial systems security.
The second half of the announcement matters as much as the first: the $400M acquisition of Medigate extends Claroty beyond factories and utilities into hospital networks and connected medical devices, folding a healthcare IoT specialist into an industrial-security platform.
First-order effects
- Medigate's healthcare customers and pipeline now sit inside Claroty, giving the combined company coverage of both operational technology and medical device security under one vendor.
- Vision Fund 2's lead check at a ~$2B valuation hands Claroty a war chest its OT-security rivals must now match or explain around.
Second-order effects
- Competitors selling into hospitals and industrial operators face a rival that can bundle device discovery, monitoring, and services across both verticals, pressuring point-solution vendors in healthcare IoT security.
- The scale-up paid forward: two years later Claroty raised a $100M pre-IPO round at an estimated $2.5B valuation while reporting $100M ARR, suggesting the 2021 capital went into revenue expansion rather than survival.
Third-order effects
- The pattern points toward consolidation of critical-infrastructure security around a few heavily capitalized Israeli-founded platforms — a trajectory that continued with Claroty's $150M Series F at a reported $3B valuation in 2026 and Cyera's $600M raise at $12B the same year.
- If mega-rounds keep setting the bar, vertical specialists in OT and medical-device security face a structural choice between being acquired by a platform like Claroty or raising comparable capital to stay independent.
The trend: Critical-infrastructure cybersecurity is consolidating around deeply capitalized Israeli-founded platforms, where nine-figure rounds and vertical acquisitions have become the price of staying competitive.