Finite State fetches $30m to secure connected devices in the global supply chain industry

Columbus OH-based connected device security company Finite State raised $30m in Series B funding led by Energize Ventures and with participation from Schneider Electric Ventures and Merlin Ventures.

Including the new funding, Finite State has raised $49.5m to date. Previous investors include Zetta Venture Partners, Energy Impact Partners and Drive Capital.

The company intends to use the funds to grow its product, engineering, sales, and marketing organizations, as well as add additional product security experts. With the IoT market size expected to top $1.4trn by 2027, Finite State plans to rapidly scale its data-driven approach to supply chain security to meet the demands of the market.

Founded in 2017 by a team with backgrounds in the US intelligence community, Finite State provides connected device security to protect the devices and embedded systems by illuminating the vulnerabilities and threats within their complex software supply chain.

Finite State provides firmware layer cybersecurity controls that are purpose-built for connected devices and their supply chains. The Finite State Platform automatically analyzes each device, allowing users to identify risk across a comprehensive matrix of factors.

Customers can access the platform by simply uploading device firmware to the company’s platform. Within minutes the platform provides an overall risk score, a robust Software Bill of Materials, a list of existing threats and vulnerabilities, and a wide array of other factors that affect the security of your device.

Since 2019, there has been a 300% increase in total cyberattacks on IoT and connected devices. As a result, many traditional startup companies in cybersecurity do not have the technology to adequately protect business owners in these areas. Supply chain risk assessment includes revealing information about legal risks, manufacturing location and geopolitical risks. The platform also assesses standards and regulatory compliance issues allowing asset owners and device manufacturers to stay ahead of new regulations.

Finite State pitches itself as enabling device manufacturers and their customers to understand and mitigate their risks before they are compromised. Founded by Matt Wyckhouse, founder and former CTO of Battelle’s Cyber Business Unit, the company showcased its capabilities in June 2019, when it’s widely cited 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 company has seen strong growth and has expanded its headcount to match. One recent hire was Eric Greenwald, a former Obama administration official who served with the US National Security Council, Federal Bureau of Investigation and US Cyber Command.

Energize Ventures partner Juan Muldoon said, “As today’s energy and industrial sectors chase better connectivity, tighter regulations are simultaneously demanding asset owners to prove the security of their embedded devices. Finite State is a category-defining company securing critical infrastructure in the energy and industrial spaces by delivering clear visibility into security gaps throughout the supply chain.”

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