Industrial cyber security vendor TXOne Networks announced that it received an investment of US$12.9 million in its ‘Series A’ financing round, taking the total it has received to $23.7 million in investments since its founding. The funding round was led by JAFCO Asia Investment, Jade Stone Jinghua Limited Partnership Fund, and other investors.
The industrial cyber security startup will use the funds to refine its industrial control system (ICS) security products, expand its business in certain regions, and strengthen marketing and after-sales service teams. TXOne said it will continue to focus on simplifying the complex and fast-changing cybersecurity issues that are troublesome for organizations at various phases of digital transformation and streamlining defense solutions necessary for the digital transformation of the ICS sector.
TXOne Networks, formed from a joint venture of Trend Micro and Moxa, has evolved to become an industrial cyber security company, which works towards protecting ICS environments while ensuring their reliability and safety from cyberattacks.
“TXOne Networks has been recognized by industrial customers since its founding, and we have experienced substantial growth since then,” Dr. Terence Liu, CEO of TXOne Networks, said in a press statement. “I am very pleased that we have completed this Series A round of investments with a good result and the trust of our investors. The successful completion of this fundraising is of great significance to us, and to set up the next stage of TXOne Networks’ development.”
“Deploying security measures in Operational Technology (OT) such as in industrial control systems is becoming increasingly important and urgent,” said Yoshiyuki Shibusawa, president and chief executive officer of JAFCO Asia, a Japanese venture capital group. “Cyber threats to such targets are growing at alarming rates and pose social risks that can no longer be overlooked. This is why getting to know TXOne Networks, who are in the midst of this remarkable problem-solving, has been very exciting for us,” he added.
In May, Trend Micro released its TXOne StellarProtect, an all-terrain endpoint protection defensive solution, custom-engineered for OT environments. ICS endpoints often operate in a harsh environment, where they must provide consistent output and deliver uninterrupted performance. StellarProtect can operate without an internet connection, using policies designed around ‘least privilege’ to thwart both known and unknown malware, as well as fileless attacks.
The industrial cyber security sector has been in recent weeks and months witnessing acquisitions and fresh new investments.
This was preceded earlier this month by Nozomi Networks securing a $100 million pre-IPO funding round that set the pace for the enhancement of its product portfolio in the evolving OT/IoT security market. In June, Claroty secured ‘the largest investment ever made within the industrial cybersecurity sector,’ with its Series D financial round of $140 million, taking the company’s total funding to $235 million.
The deals reflect the growing concern about critical infrastructure and security in OT environments, which is expected to drive the market for some time now.
Deloitte Risk & Financial Advisory acquired aeCyberSolutions, the industrial cyber security business from Applied Engineering Solutions (aeSolutions), earlier this month. The deal was focused on bolstering Deloitte’s existing cybersecurity offerings with aeCyberSolutions’ business frameworks, methodologies, and technology-enabled tools for ICS and OT environments.