US-based automotive cybersecurity technology developer Karamba Security has raised $12m in a series B round that featured insurance provider Liberty Mutual, diversified conglomerate Sumitomo and security management services provider Asgent.
The round was co-led by YL Ventures and Fontinalis Partners, while GlenRock Israel and Paladin Capital Group also participated. Liberty Mutual and Sumitomo invested through respective investment subsidiaries Liberty Mututal Strategic Ventures and Presidio Ventures.
Founded in 2015, Karamba has developed prevention technology that protects cars from hacking attempts. The software works by blocking attempts to alter a vehicle’s factory settings, eliminating the risk of false positives potentially caused by other approaches.
The series B capital, which took Karamba’s total funding to $17m, will go toward expanded customer support, sales activities and research and development efforts. Fontinalis led the startup’s $2.5m series A round in September 2016, investing together with YL Ventures and GlenRock Israel.
YL Ventures had previously led a $2.5m seed round in April 2016 that also featured GlenRock Israel.
Ted Tatsumi, chief executive of Presidio Ventures, said: “On one hand, we see a future of great potential as embedded systems such as those found in automobiles become increasingly powerful and connected.
“On the other hand, with the rise of connectivity and autonomous control comes a serious security risk, which mandates cyber prevention as a vital part of product roadmaps.”