Israel cybersecurity startup Claroty targets 2025 US IPO at $3.5 billion valuation

It’s been a whirlwind six years since Israel’s Industrial cybersecurity startup  Claroty last graced our pages here at TechStartups. Back then, this industrial cybersecurity juggernaut was celebrating a $60 million Series B funding round, attracting a star-studded lineup of investors from industrial operators to control system vendors. But that was just the beginning.

Now, poised at the cusp of a potentially monumental moment, Claroty is gearing up for its grand public debut slated for next year.

According to a recent report by the Calcalist Financial Daily, Claroty is eyeing a possible initial public offering (IPO) in the United States in 2025, with an eye-popping valuation of $3.5 billion. Sources privy to the matter revealed that the company’s current valuation sits comfortably at $2.5 billion, and discussions are underway with underwriters for a listing either on the Nasdaq or the New York Stock Exchange.

“An IPO in New York is an important business milestone in the development of the company. The process has not yet begun and we do not yet have a set timetable for the IPO. We will announce this when the time comes. In the meantime, we continue with rapid growth according to our plans,” Claroty told Calcalist.

However, a spokesperson from Claroty told Reuters that while the IPO process is on the horizon, concrete timelines are still being hammered out.

Founded back in 2014 by venture group Team 8 and Amir Zilberstein, Claroty emerged from stealth mode in late 2016 with a clear mission: safeguarding critical infrastructure systems like power grids, steel mills, and oil refineries from the perils of cyber threats.

Their flagship offering, the Claroty Platform, stands as a testament to their commitment, providing unparalleled visibility, robust threat detection, secure remote access, and comprehensive risk assessments tailored specifically for industrial control networks (ICS/OT).

In a recent interview with Reuters, Yuval Shachar, managing partner at Team8, expressed optimism about Claroty’s future, envisioning a “big IPO” looming on the horizon. Yet, he also acknowledged the current challenges in the IPO market, hinting that the timing might not align perfectly with their aspirations.

Nonetheless, Claroty isn’t resting on its laurels. Just last month, the company closed a staggering $100 million in a private funding round, bringing their total funds raised to a staggering $735 million. And in 2023, they proudly announced surpassing $100 million in annual recurring revenue, solidifying their position as a trusted partner for 20% of Fortune 100 companies.

From the outset, Claroty attracted heavyweight backers like Rockwell Automation, Schneider Electric, and Siemens in their early funding stages. Their decision to retain ownership and nurture Claroty into a formidable force in the cybersecurity realm, rather than cashing out early, underscores the tremendous growth potential they saw in protecting critical infrastructure.

As Shachar reminisced, “By Series C funding round, we felt like we were poised to become the incumbent in what is now clearly a huge, huge market, defending infrastructure.” And with Claroty’s steadfast rise, that vision seems closer than ever to fruition.