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Cybersecurity company Shift5 is experiencing rapid growth as it develops technology to safeguard the world’s military fleets, plane and train systems.
The Rosslyn-based startup has been steadily raising money, including $33 million last month, adding to $50 million raised last year. Shift5 has ridden this wave of investor interest, using it to expand its office space, add employees and, most recently, launch a new program to predict and avoid failures in military, rail and aviation technology.
“This [funding] has allowed us to invest in not just our employees, but also the greater Arlington community,” Shift5 CEO Josh Lospinoso told ARLnow. “Our expanding presence in Arlington enables us to continue driving the pace of technology outside the Silicon Valley while keeping an active pulse on the decisions being made at the Pentagon to improve and advance critical infrastructure.”
Lospinoso says Shift5 nabbed the extra $33 million because investors are interested in its stability and connections.
“We’ve seen tremendous benefit from strategic investor involvement and wanted to expand their participation. Shift5 has eliminated bottom-line risk, found strategic points of connection with other industry leaders and brought them into our Series B funding,” Lospinoso said.
The most recent fundraising round, led by Moore Ventures with contributions from JetBlue Ventures, Booz Allen Ventures and Teamworthy Ventures, brings its total Series B fundraising to $83 million.
Within weeks of the funding news, the company had another announcement: a new program that will use artificial intelligence to improve maintenance and the operational intelligence services Shift5 provides, a spokeswoman said.
“Fleets generate enormous amounts of data that can be game-changing for how they’re maintained and secured, but most operators only have access to a small fraction of this data,” a press release said. “Shift5’s module will unlock this data, arming operators with the insights and context needed to secure their assets, improve performance and prevent system failures.”
While the company has racked up investors, in the last year it has also more than doubled its annual recurring revenue and number of customers representing the military and private companies.
Lospinoso said the additional $33 million will go toward making sure the company can meet the needs of its growing customer base.
“It will help us double down on our mission to unlock onboard data and increase observability for rail, aviation and military systems operators,” he said. “More specifically, as customer demand increases this extension funding will provide Shift5 additional runway to innovate for our customers and invest in our business and team.”
