US and Israel-based cybersecurity startup company, Sepio Systems, has raised USD6.5 million in its latest funding round led by Hanaco Ventures and Merlin Ventures.
Sepio’s existing investors Energias de Portugal (EDP), Mindset Ventures and Pico Partners also participated in the funding round. Since its establishment, Sepio Systems has raised USD11 million.
In conjunction with the financing, Sepio has also made two new appointments to its management team. Gili Sahar is to join as CFO and Chen Ben Eliyahu has been appointed Vice President of Business Development.
Sepio offers an end-to-end solution that detects and mitigates hardware-based attacks, rogue peripherals, invisible network devices and manipulated firmware. Sepio Prime, a software-only solutions has been deployed in over 25 banks, insurance and telecom companies in the US, Singapore, Brazil, South Africa and Israel.
Yossi Appleboum, Co-Founder and CEO of Sepio Systems, says: “The increasing number of hardware based cyber-attacks is a major concern to all enterprises. While all other security solutions are focused on software threats, they are incapable of stopping threats coming from hardware.”
“Sepio defines and solves a problem most enterprises know they have but cannot quantify or resolves,” explains Alon Lifshitz, Founding Partner at Hanaco Ventures. “Besides creating the Rogue Device Mitigating category, it’s rare as an investor to back founders that have worked as a team for over 20 years now building their third startup together.”
“Partnering with Hanaco and Merlin and the continuous support from our existing investors highlights the industry reception to our solution. The major investment allows us to grow faster, increasing marketing and sales activities and engineering resources,” Appleboum adds.
Merlin’s partnership with Sepio includes bringing its Rouge Device Mitigating solution to market in the US Federal space.
David Phelps, Chairman and CEO of Merlin says: “As soon as we saw Sepio, we realised it was filling a critical gap in supply chain security by extending network visibility down to the physical layer. Our model is to invest in differentiated cybersecurity technology that we can bring to market to solve our customers’ most difficult challenges, and we see Sepio as the perfect fit.”