Ensuring Industrial Security: Shift5 Raises $33 Million in Funding

Cybersecurity Funding: OT Security Firm Shift5 Adds $33 Million in Funding

Increase in Funding and Background of Shift5

OT security firm Shift5, based in Arlington, VA, recently raised an additional $33 million in its Series B financing round, bringing its total venture funding to $108 million. The company focuses on providing cybersecurity solutions for operational technology (OT) within fleet vehicles, including planes, boats, trains, military vehicles, and weapon systems. Shift5‘s co-founders, Josh Lospinoso (CEO) and Michael Weigand (CGO), have backgrounds in US Army cyber operations, which has helped them secure contracts with the Department of Defense (DoD).

Involvement of Booz Allen Hamilton and DoD as Major Customer

The involvement of Booz Allen Ventures in the funding round is notable because it aligns with Booz Allen Hamilton’s National Cyber strategy. Shift5 has been working with the DoD since its inception and has made progress in collaborating with different branches and combatant commands, including the Army, Navy, Air Force, Space Force, and Special Operations Command. The company expects further growth in its work with the DoD in the coming year. The ongoing Ukraine conflict and rising geopolitical tensions worldwide have likely contributed to the DoD’s increased demand for cybersecurity solutions.

The Unique Selling Point of Shift5: ‘Observability’

One of Shift5‘s key offerings is its ability to gather OT communications data in real time within a vehicle in motion, which the company calls ‘observability.’ This capability is crucial in understanding the operational veracity of a vehicle and detecting potential mechanical faults or cyber intrusions. By capturing and analyzing communications data, Shift5 enables accurate and timely security insights and the detection of anomalous behavior. This level of observability also allows for leading indicators of failure, facilitating predictive maintenance measures to predict and prevent failures before they occur.

The Importance of Observability and Its Impact on Cybersecurity

Shift5‘s observability not only enhances cybersecurity but also provides visibility for chief information security officers (CISOs) by offering a detailed and up-to-date representation of the OT asset’s status in question. By using this information to make decisions and take corrective actions in real time, security teams and CISOs can effectively triage cyber threats and inform their security strategies. Observability allows for a deeper understanding of cybersecurity incidents, including details like the activity of malicious actors, the vehicle’s speed, altitude, and location.

Editorial: The Significance of Shift5‘s Funding

Shift5‘s recent funding round highlights the increasing emphasis on cybersecurity in the OT space, especially within the defense sector. The involvement of Booz Allen Ventures and the DoD’s significant customer base demonstrate the importance of securing fleet vehicles, military assets, and critical systems against cyber threats. As the world becomes more interconnected, the potential consequences of cyber intrusions on transportation and defense systems grow more severe. Shift5‘s observability solution addresses this pressing need by providing real-time insights and enabling proactive measures to safeguard these vehicles and systems.

Advice on Investing in Cybersecurity

As cyber threats continue to evolve and increase in sophistication, investing in cybersecurity solutions becomes crucial for organizations across industries. The case of Shift5 exemplifies the rising demand for OT security in critical infrastructure and defense sectors. Investors should keep a close eye on companies like Shift5 that offer innovative solutions for protecting operational technology. Additionally, allocating resources towards cybersecurity initiatives and partnerships can help organizations stay ahead of potential threats and mitigate risks in an interconnected world.