Shift5, a cybersecurity startup based in Arlington, has raised $20 million in Series A funding to expand its security platform’s capabilities.
The funding round was led by 645 Ventures and brings the total funding raised by the startup to $22.5 million. Squadra Ventures, General Advance, and First In also participated in the round. Nnamdi Okike, Co-Founder and Managing Partner at 645 Ventures, referred to the firm’s participation in the round by stating:
“Shift5 represents the best of what 645 looks for in an investment: a talented, driven and experienced team building a differentiated technology company to solve a critical and growing problem. The challenge of monitoring and securing commercial and government fleets, vehicles, and systems against cyberattack and malfunction is one of the most important in cybersecurity today. We’re excited to partner closely with them as they scale the business.”
Founded in 2019, Shift5 is led by a team of cybersecurity experts, with its founders having to be part of the U.S Army Cyber Command. The startup was founded with the mission of developing operational technology (OT) solutions that protect critical infrastructures like planes, trains, and tanks from the increasing number of cyberattacks.
The startup has experienced rapid growth over the past years as governments around the world started to focus on improving their legacy OT solutions to protect themselves from an increasingly hostile cyberspace. Joe Lea, President at Shift5, said in this regard:
“When we talk about defending OT for transportation infrastructure assets, it’s with the understanding that the margin for error is miniscule. Shift5’s roots in military spaces means these stakes were present from the get-go. Such standards have enabled us to work with like-minded partners in the federal space, and have increasingly opened the doors to conversations with leading commercial rail and airline security officers. Our discussions are similar: transportation is infrastructure that drives global economic performance, that millions of people rely on daily, and that defends the nation; lacking the ability to defend it is unacceptable.”
According to some reports, the cost of global cybercrime in 2021 is expected to be as high as $6 trillion, which has elevated this crime to be considered one of the greatest threats in today’s world. With high-profile cyberattacks like the one suffered by Colonial Pipeline back in May becoming more common, cybersecurity companies like Shift5 are expected to become increasingly relevant.