The cyber company Panorays announced Thursday it raised $42 million in its Series B round, which was led by Greenfield Partners, with participation from Aleph, Oak HC / FT, Greenspring Associates, BlueRed Partners, and Moneta VC. Since its inception, Panorays has raised $62 million.
Panorays developed an information security platform that identifies weaknesses and issues in the customers’ supply chain. The process connects different organizations, in order to provide a product or service. Supply chain attacks have become common in the last year, like the cases of SolarWinds, Accellion, Kaseya, and Codecov.
Matan Or-El, Panorays co-founder and CEO, said the recent rise in such attacks was in part due to the access to a large number of clients a hacker can obtain at once. “Each attack affects several customers of the same source, hence its impact is much greater, and even small vendors provide access to a few organizations. Attackers locate the weakest link in this chain and attack it.”
The increase in attacks has brought a growing awareness of the field, and demand for defense measures continues to grow. Organizations have hardened their demands on suppliers, but they can not avoid using external vendors, and every company today has between hundreds to thousands of various vendors.
Most companies are both customer and supplier at the same time, how do you differentiate?
“That is why Panorays is in a very interesting place in its sector. We have end-customers on the one hand, and vendors on the other, which makes us a product everyone needs in the end, and it does go through both ends meaning we can assist companies in doing safer business."
A $42 million round B is a small sum considering the Israeli Cyber market today
“We work in a very methodical manner, always thinking about what we really need in order to grow. We already have hundreds of customers in the U.S., Europe, and Japan and we calculated how many we need for expansion. We wanted to raise even less but because the market is doing well, we have recruited a little more.”
“Plenty of companies today are considered unicorns, but only God knows if they will meet expectations,” added Demi Ben-Ari, the company co-founder, and CTO. “We prefer to grow organically, so we do not have to cut back in a couple of years."
Panorays clients include Mixpanel, CAPTRUST, AppsFlyer, Payoneer, Migdal Insurance, Telit, Sompo, Clear Bank, etc.