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Karamba Security announced on May 16 that it has raised a new $12 million Series B round of funding to further its mission of helping to secure connected and autonomous vehicles.
The new funding round was led by YL Ventures and Fontinalis Partners and included the participation of Paladin Capital Group, Liberty Mutual Strategic Ventures, Presidio Ventures and Asgent Inc. Karamba's Series A round in September 2016 raised $2.5 million, bringing the total funding to date for the company to $17.5 million.
The core platform that Karamba provides is called Carwall and was first announced back in June 2016. The basic premise behind the Carwall technology is to secure the electronic control units (ECU) in vehicles.
Carwall can also help to reduce the potential of in-memory attacks against vehicles. In-memory attacks to not install any malware in order to exploit vehicles. Researchers from Chinese firm Tencent disclosed in-memory attacks against Tesla vehicles in September 2016.
As to why Karamba is raising new money now, David Barzilai, chairman and co-founder of Karamba Security, said that most of the money raised in the prior investment round is still in the bank.
"However, the market demand for Karamba’s products has exceeded our expectations," Barzilai told eSecurityPlanet. "The money which was raised, together with the proceeds from previous rounds, will be used to expand Karamba Security’s global presence and drive further development."
Overall since Karamba raised its Series A, Barzilai said that adoption of his company's technology has accelerated in 2017.
"In addition, some of the first Tier-1s that started technology evaluations of Karamba’s products in Q2 and Q3 2016 have selected Karamba to go with their technology into production," Barzilai said.
The market for connected car security is a competitive one with multiple vendors in the market. Among the vendors is Symantec, which has a connected car security solution in the market called Anomaly Detection for Automotive.
Looking forward, Barzilai said that he expect that Karamba will continue to grow.
"We will continue to expand globally, hire support and sales engineers in each major location, and continue product innovation," he said.
Sean Michael Kerner is a senior editor at eSecurityPlanet and InternetNews.com. Follow him on Twitter @TechJournalist.