Finite State Raises $30M Series B to Secure Device Firmware

Finite State Secures $30 Million in Series B Funding

Finite State, a company headquartered in Columbus, Ohio, specializing in supply chain security for connected devices and vital infrastructure, has successfully secured $30 million in Series B funding.

Growing Concerns Over Supply Chain Vulnerabilities

This investment arrives during a period of heightened awareness regarding vulnerabilities within organizational supply chains. Particular attention is being directed towards less secure components like Internet of Things (IoT) devices and embedded systems.

Finite State identifies device firmware – the fundamental software often incorporating third-party or open-source elements – as a primary driver of this issue. Manufacturers may be unaware of security flaws embedded within the final product due to this reliance.

The Rise in Firmware-Targeted Cyberattacks

“Firmware is increasingly viewed by cyberattackers as a point of weakness for gaining unauthorized access to critical systems and infrastructure,” explains Matt Wyckhouse, CEO of Finite State, in a statement to TechCrunch. “The incidence of cyberattacks specifically targeting firmware has increased fivefold over the past four years.”

Finite State’s Platform: Enhanced Visibility

The Finite State platform delivers comprehensive visibility into the supply chains responsible for creating connected devices and embedded systems.

By meticulously unpacking and analyzing each file and configuration within a firmware build, the platform generates a complete software bill of materials. It also identifies both known and potential zero-day vulnerabilities, assigns a contextual risk score, and provides actionable insights for product teams to enhance software security.

Unique Capabilities in Supply Chain Analysis

“We empower manufacturers to deliver more secure products, fostering greater user trust in their connected devices, by examining every aspect of their supply chain and firmware – a capability unmatched by any other product currently available,” Wyckhouse states.

Funding Details and Future Plans

Energize Ventures spearheaded the latest funding round, with contributions from Schneider Electric Ventures and Merlin Ventures. This follows a $12.5 million Series A round raised a year prior, bringing the company’s total funding to nearly $50 million.

The startup intends to utilize these funds to expand operations to meet growing market demands. Finite State anticipates increasing its workforce from its current 50 employees to over 80 by the close of 2021.

Emphasis on Secure-by-Design Firmware

“This funding round will also be instrumental in disseminating a crucial message: Firmware security requires a secure-by-design approach,” Wyckhouse emphasizes. “Analyzing only the code developed internally is insufficient when vulnerabilities within the supply chain can introduce significant security risks.”

Company Background and Notable Achievements

Founded in 2017 by Matt Wyckhouse, who previously served as founder and CTO of Battelle’s Cyber Business Unit, Finite State gained prominence in June 2019.

Its widely referenced Huawei Supply Chain Assessment revealed numerous backdoors and substantial security vulnerabilities within the Chinese technology company’s networking devices, potentially exploitable in 5G networks.