General Electric (NYSE:GE), through its GE Ventures arm, has joined in a $12 million fundraising round for blockchain firm Xage Security, a provider of security solutions for Industrial Internet of Things (IIoT).
March Capital Partners led the Series A funding, in which City Light Capital and NexStar Partners also took part, Xage announced on Tuesday. The California-based startup will use the investment to further develop its blockchain-protected platform Xage Security Suite that aims to ensure secure communication between IIoT devices, such as gas and oil turbines, jet engines and manufacturing machinery.
Moreover, the money will help Xage expand its tech team and be better equipped to implement its technology in the energy, telecom, utilities, building management and manufacturing industries.
“The Xage Security Suite is a pioneering technology that transforms the way we protect and innovate with the new generation of smart, connected infrastructure,” said March Capital Partners managing director Sumant Mandal and claimed Xage is laying the foundation for “Industry 4.0”.
Xage CEO Duncan Greatwood noted that IIoT technologies need a solid integration of cybersecurity if they are to be successfully implemented. In a similar vein, GE Ventures managing director of investing Abhishek Shukla maintained that industries can benefit from the IoT revolution only if enterprises “fully connect and protect their operations”.
GE’s decision to invest in Xage should not come as a surprise considering the Boston-based conglomerate’s strong focus on IIoT through its subsidiary GE Digital. A keen interest in blockchain technology is not a new thing for GE either. In December 2017, the conglomerate filed a patent with the US Patent and Trademark Office (USPTO) for blockchain to verify 3D-printed products in its supply chain. In a bid to explore the use of blockchain tech in the transportation sector, GE joined the Blockchain in Transport Alliance (BiTA) on March 1.
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