This week, supply chain cybersecurity provider Fortress Information Security announced that it has received a $125 million strategic investment from funds managed by Goldman Sachs Asset Management‘s Private Equity business. The company said it plans to use new funds toward its mission of securing U.S. critical industries from cybersecurity and operational threats to their supply chains. Existing investors, including co-founders Peter Kassabov and Alex Santos, ClearSky, First Analysis, American Electric Power, Caron Capital, KMMT, and Moquin Capital, will remain invested in Fortress.
Founded in 2015, Fortress describes its cybersecurity platform as a “deep, fit-for-purpose solution that enables customers in critical industries to assess, manage, and address risks associated with vendors, assets, and software in their supply chains.” The Fortress solution was co-developed with leading electric utilities and has since grown into a consortium tool that includes five of North America’s ten largest investor-owned utilities.
Fortress’s platform secures 40 percent of the U.S. power grid, substantial national defense-related assets, and critical manufacturing industries.
As critical industries increasingly face cybersecurity threats emanating from the supply chains that underlie them, federal government and private sector stakeholders have recognized that securing critical supply chains is a national security issue. In response, authorities such as the Cybersecurity and Infrastructure Security Agency (CISA) and the North American Electric Reliability Corporation (NERC) have released supply chain cybersecurity guidelines in the past year.
“Supply chain cybersecurity is one of the most important challenges facing business and government leaders today. Supply chains represent a source of significant threats to the national economy and our ability to maintain our way of life,” said Fortress Executive Chairman and Co-Founder Peter Kassabov. “We started Fortress because we recognized major supply chain vulnerabilities in our country’s most critical industries. Many recent high-profile breaches have spawned a new wave of regulatory action in the U.S. that will likely expand for the foreseeable future.”
“The Goldman Sachs investment validates the hard work of our employees and clients who have brought collaborative cybersecurity to life,” said Fortress CEO and Co-Founder Alex Santos. “This growth capital infusion will empower us to accelerate the execution of our vision of resilient supply chains.”
“Fortress has established itself as a market leader in end-to-end supply chain cybersecurity solutions for U.S. critical industries and we look forward to scaling the company’s Asset-to-Vendor network, which provides significant value to critical infrastructure suppliers and customers,” said Will Chen, Managing Director with Goldman Sachs Asset Management.
Additional terms of the transaction were not made public.
