Exein, an Italian cybersecurity firm focused on IoT and embedded device security, has raised €70 million (US$81.9 million) in its series C funding round.

The funding was led by Balderton, with contributions from Supernova, Lakestar, and existing investors 33N, United Ventures, and Partech.

The company plans to use the funds to expand its operations in the United States, Japan, Taiwan, and South Korea.

The investment will also support the development of new technologies, including runtime security solutions for AI infrastructure and large language models.

Exein’s platform offers real-time embedded security for IoT and connected devices, addressing the increasing risks of cyberattacks.

The technology is reportedly used by industry leaders, including MediaTek, Supermicro, Kontron, SECO, and AAEON, protecting over 1 billion devices.

🔗 Source: Exein

🧠 Food for thought

1️⃣ IoT security market experiencing unprecedented growth amid rising threats

The explosive expansion of IoT security solutions reflects the growing recognition of embedded device vulnerabilities, with the global market projected to grow from $6.3 billion in 2024 to $42.9 billion by 2033, representing a 23.4% CAGR 1.

This growth aligns with Exein’s reported 450% year-over-year expansion and recent €70 million funding round, positioning them within a rapidly consolidating market where the top 10 providers already account for over 40% of market share 2.

Driving this growth is the escalating frequency and sophistication of attacks, with manufacturing sector cyberattacks increasing at 125% annually and potential global economic losses reaching up to $10 trillion by 2025 3.

The urgency is particularly acute in industrial environments where operational technology security breaches can cause physical damage, with the industrial sector experiencing the highest growth in data breach costs 4.

2️⃣ The shift toward edge-based security addresses evolving attack vectors

Security strategies are increasingly moving from network perimeters to the devices themselves, with Exein’s approach of embedding security directly into device firmware representing a broader industry trend toward runtime protection 5.

This evolution responds to attackers’ growing sophistication in exploiting unconventional entry points, as highlighted by Exein’s CEO Gianni Cuozzo who noted, “Attackers are no longer breaching through the front door; the microwave on a military ship or the smart fish tank in a hospital waiting room—any one of these could be exploited to compromise the entire network” 6.