Hanover-based industrial cybersecurity company Dragos raises $110M Series C

Hanover-based Dragos, a cybersecurity firm that focuses on the systems that control key infrastructure and industrial functions, said Tuesday that it closed on $110 million in new investment.

The Series C funding round was co-led by the investment arms of energy company National Grid and Koch Industries. Also participating in the round were Saudi Aramco Energy Ventures, the venture arm of the Saudi Arabian oil company, and computing company Hewlett Packard Enterprise. Existing investors including Allegis Cyber, the cybersecurity venture firm that has an office in Maryland, and Fulton-based incubator DataTribe, also participated, as well as Canaan, Energy Impact Partners and Schweitzer Engineering Labs.

The funding round brings the company’s total raised to $158 million. It’s a standout dollar figure for a company headquartered in the region, bringing what’s known in VC circles as a “megadeal” of over $100 million to Maryland.

Founded in 2016 by a team bringing intelligence community experience that includes CEO Robert M. Lee, Jon Lavender and Justin Cavinee, Dragos was among a new generation of cybersecurity companies that have grown in the area after taking up residency at DataTribe.

The company focuses on securing the industrial control systems (ICS) and operational technology (OT) that operate power grids and transportation. This also extends to the needs of industry in fields like oil and gas, manufacturing, mining and chemicals. It’s an area that has drawn threats from attackers at the nation-state level. And given the investors in this round, it appears to be an area where the companies are seeking more security.

“Our Series C funding is an investment by industry, for industry, and will enable us to fully meet this moment for our customers by advancing the innovative technology at the center of our Dragos Platform, expanding our global footprint, and continuing to recruit the world’s most elite team of ICS/OT cybersecurity experts,” CEO Robert M. Lee said in a news release.

The company said it has offices in Canada, Australia, New Zealand, Europe and the Middle East, and will look to continue to grow internationally.