This is the second round over $20 million in the last 15 months for Cato
Tel Aviv-based Cato Networks raised a new $30 million Series B funding round led by 83North with participation from Singtel Innov8 and returning investors Aspect Ventures and US Venture Partners (USVP). It also includes personal funding by Cato co-founders CEO Shlomo Kramer and CTO Gur Shatz.
“Cato offers a totally new way to cut the cost and complexity of legacy, on-premise networking and security solutions by delivering them as a holistic, agile and scalable cloud service,” Kramer said in a press release.
Aspect and USVP had invested in Kramer’s past ventures Check Point Software Technologies and Imperva. Schatz brought in his cloud experience from time as co-founder of security company Incapsula. The round builds on a $20 million Series A investment that Cato got last year.
Cato provides a cloud-based, secured network for large enterprises that can be accessed from any location and also via mobile devices. They were recently called an emerging example of the so-called FWaaS industry (firewall as a service, because we don’t have enough aaS abbreviations) by Gartner, but the company has been pushing itself as an “NSaaS” startup (network security as a service).
Now that we’ve cleared that up, it’s worth noting that Infonetics forecasts that the global network security market will be worth $7.5 billion by 2020, growing at a CAGR of 1.5% per year. Other startup competitors in the NSaaS field include Magma Venture Partners-backed FortyCloud, fellow USVP portfolio company PLUMgrid, Alert Logic, OpSource, Rook Security and Pertino.
Cato lists features like eliminating “distributed networking and security appliances, network simplification, reduction of MPLS connectivity costs, and direct access from “all remote locations.”
“The Cato Cloud is currently in production with our first global, multi-site corporation,” Shatz added in a statement, “and we are running concurrent pilots for different use cases across dozens of organizations.”