SandGrain secures €13.5M to bolster IoT security worldwide

Dutch company SandGrain has raised €13.5 million in a Series A funding round to accelerate the global expansion of its CyberRock solution, which delivers advanced security for Internet of Things (IoT) devices. These are objects, such as smart home devices, that are embedded with sensors and connect to the internet. The innovative technology uses a hardware-anchored approach to provide secure authentication, addressing growing cybersecurity challenges and new industry regulations without sacrificing cost-effectiveness or ease of integration.

SandGrain's CyberRock solution employs a unique approach to IoT security by embedding a hardware token with an immutable, globally unique ID into each device. This hardware token is linked to a secure enclave that stores the corresponding secret keys, enabling symmetric challenge-response authentication. This method allows for reliable device identification and verification without relying on centralized databases, enhancing security and reducing costs. The system also includes a secure cloud platform that manages real-time identity and authentication.

With the proliferation of connected devices, cybersecurity has become a paramount concern for businesses worldwide. The rise of quantum computing also poses a threat to traditional certificate-based security methods. Furthermore, new regulations such as the EU Cyber Resilience Act and the NIS2 Directive are raising the bar for device security. CyberRock is designed to meet these challenges by providing post-quantum-resilient IoT security at a lower total cost of ownership and compliance with industry standards.

The investment

The €13.5 million Series A funding round was led by Innovation Industries, with contributions from the Brabant Development Agency (BOM), Invest-NL, and existing investor DeepTechXL. This investment will enable SandGrain to accelerate the global rollout of its CyberRock solution, targeting sectors where the security of autonomous devices is critical, including industrial applications, critical infrastructure, and the aerospace and defense sectors.

“Complexity and cost have long been the bottleneck in IoT security,” said Joeri Voets, CEO of SandGrain. “With SandGrain’s CyberRock already protecting devices in the field, this investment enables us to scale faster and deliver the simplicity and future resilience the market urgently needs.”

“SandGrain solves a large challenge in IoT: making strong security economical at the end-node”, said Rogier Ketelaars, Investment manager at Innovation Industries. “By avoiding certificates and with a simple pre-provisioned unique Root-of-Trust, device authentication becomes simpler and cost-efficient. Their solution is easy to deploy today and designed with post-quantum resilience in mind, giving customers confidence in their security tomorrow.”