General Electric (GE) has contributed to a fundraising round totaling USD 12 million for cybersecurity startup Xage that utilizes blockchain technology in collaborating Internet of Things (IoT) devices.
GE’s funding has come from the venture capital arm of the multinational conglomerate. The venture’s managing director of investment Abhishek Shukla spoke on the decision, noting the necessity of full protection for organizations and their operations in order to fully benefit from what he described as the ”IoT revolution“. Expressing GE’s confidence in Xage, he described the start-up as enabling the adoption of innovative technologies across a multitude of industries.
Xage’s technology
The cybersecurity company attracted backers by creating a decentralized network of devices that recognize the digital fingerprint of each machine in the network, so any anomaly can be detected by any device. This means that attacks can be prevented from cases of infiltration via a centralized authority in the system.
Industrial control systems can often be challenging to secure as the majority were produced before the security threats of today had emerged, and are not programmed to be able to sustain such attacks. Due to this, and combined with the difficulties in providing cybersecurity to machines with a variety of manufacturers, optimal security measures can be challenging and costly to meet. By decentralizing the network, Xage’s solution seeks to combat these challenges.
Xage was valued at USD 35 million prior to this fundraising effort. Other investors in the round include City Light Capital and NexStar Partners. With cyber-attacks appearing more frequently in the news, there is a growing need for cybersecurity innovations and investors.
GE’s blockchain endeavors
Alternative subsidiaries of GE have been testing blockchain technology in their relevant areas, the results of which include GE filing a blockchain patent to be used verifying 3D-printed parts during the supply process. Blockchain-related patents were also filed by GE in the areas of aircraft monitoring and maintenance.
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