COLUMBUS, Ohio—May 5, 2020—Finite State, experts in supply chain security and risk management for IoT and embedded devices, announced today that it has raised $12.5 Million in a Series A funding round. The round was led by Energy Impact Partners, who were joined by Zetta Venture Partners, cybersecurity veteran Niloofar Howe, and other undisclosed investors. This round follows a $7M seed round led by Drive Capital, a Midwest based fund with $1.2B under management, bringing the total company funding to $19.5M.
Based in Columbus and founded in 2017 by Matt Wyckhouse, founder and former CTO of Battelle’s Cyber Business Unit, Finite State has remained largely in stealth mode as its team has worked diligently on building advanced technology that uncovers vulnerabilities and threats in the supply chain of IoT and connected devices.
Despite keeping a low profile, the company widely showcased its unique capabilities in June of 2019 when its Huawei Supply Chain Assessment revealed numerous backdoors and major security vulnerabilities in the Chinese technology company’s networking devices that could be used in 5G networks. The report has been cited by government officials, cybersecurity experts, and in news and media around the world.
This round of funding will allow Finite State to scale its team of world-class engineers, whose mission is focused on advancing the company’s cutting-edge technology that enables unprecedented visibility into device firmware. With its focus on users and manufacturers of connected devices in the energy, telecommunications, and national security sectors, an expanded team will give Finite State the bandwidth to secure some of the world’s most critical infrastructure.
“The exponential growth of connected devices powering our critical infrastructure is driving attackers to change their tactics and target these more vulnerable devices,” said Matt Wyckhouse, Founder and CEO of Finite State. “Finite State focuses on creating transparency within supply chains, so manufacturers and end users can work together to mitigate vulnerabilities before they are exploited.”
“The proliferation of internet of things (IoT) devices has enabled a smarter and more resilient electric grid. As operators rapidly deploy IoT devices for critical industrial and business functions, the stakes have never been higher for security teams to keep up with the risks and vulnerabilities that exist within these devices,” said Sameer Reddy, partner at EIP. ”We’re excited to partner with Finite State as the company brings its platform to the energy sector to provide operators with exceptional, real-time intelligence of supply chain risk.”
“Finite State takes a uniquely data-driven approach to discovering vulnerabilities in the IoT fabric that now powers every part of the economy from transportation to health care to fundamental infrastructure,” said Jocelyn Goldfein of Zetta Venture Partners. Zetta was also among the company’s initial investors. She goes on to say that “IoT represents the new frontier of cyber attacks, and Finite State’s unique threat intelligence is an invaluable assist for defenders.”
Prioritizing Supply Chain Security
The complexity of supply chains for connected devices makes it extremely difficult to know whether or not a device is truly secure. Because device manufacturers source parts and software from many different vendors, it is challenging for them to understand and mitigate the risks their devices pose without extensive testing. Through firmware analysis on behalf of device manufacturers and their customers, Finite State’s platform is able to automatically scan each device and provide an in-depth analysis into the device’s firmware, including the presence of known vulnerabilities, potential backdoors, supply chain threats, and other crucial information that affects the overall risk of each device.
This information is key to allowing end users to understand and mitigate the risk presented by each device, and it allows OEMs to address and resolve these issues and share the risk analysis with their customers. This transparency is the key to creating more secure supply chains and ensuring safer networks in all industries from utilities to manufacturing, healthcare to government systems.
About Finite State
The mission of Finite State is to protect the devices that power our modern lives by illuminating the vulnerabilities and threats within their complex software supply chains. With backgrounds in the U.S. Intelligence Community, our team has the unique perspective to be able to understand the intricacies of hidden risk in connected devices. Finite State is headquartered in the heart of the Midwest in Columbus, Ohio. For more information, visit www.finitestate.io.
About Energy Impact Partners
EIP is an investment firm focused on the conversion of the energy industry towards a decarbonized, decentralized, digitized and electrified future. EIP brings together leading innovators with some of the world’s most forward-looking energy and operating companies to create a cleaner, more secure, and resilient future. Through close collaboration with its investor base, EIP connects innovative companies with buying power and industry vision to influence the emerging energy landscape. EIP’s utility partners include Southern Company, National Grid, Xcel Energy, Ameren, Evergy, Fortis Inc., AGL, Avista, MGE Energy Inc., TEPCO, PTT Public Company Limited, OGE Energy Corp., TC Energy, and Alliant Energy. www.energyimpactpartners.com.
About Zetta Venture Partners
Founded in 2013, Zetta Venture Partners is the leading venture capital firm focused exclusively on AI. With $365 million under management, Zetta supports entrepreneurs inspired by the power of data and AI to confront fundamental challenges in health, climate, economies, and infrastructure. Visit http://www.zettavp.com for more.
About Niloofar Razi Howe
Niloofar Razi Howe has been an investor, executive and entrepreneur in the technology industry for the past 25 years, with a focus on cybersecurity for the past 10. Most recently, Howe served as Chief Strategy Officer and Senior Vice President of Strategy and Operations at RSA, a global cybersecurity company where she led corporate strategy, corporate development and planning, business development, global program management, business operations, security operations and Federal business development. Prior to RSA, she served as the Chief Strategy Officer of Endgame, Inc.