Michigan group leads $2.5M stake in cybersecurity firm targeting driverless cars

Fontinalis Partners of Detroit has led an investment of $2.5 million in Karamba Security, a company based in Hod Hasharon, Israel, that makes cybersecurity solutions for connected and autonomous vehicles.

Grand Cayman-based YL Ventures and GlenRock Israel of Herzliya, Israel, have also invested in the company.

"We're delighted to have Fontinalis Partners as our newest investor," Ami Dotan, Karamba Security's CEO and co-founder, said in a statement. "As a fund dedicated to next-generation mobility solutions, they've seen every cybersecurity solution out there. Their investment in Karamba Security is a testament to our solutions."

Karamba Security's software secures vehicles from cyberattacks by automatically locking down electronic control units.

"We've been following Karamba Security since its launch," said Chris Thomas, a founder and partner at Fontinalis, who will join Karamba's board. "We were impressed to see how successful Karamba Security has been in engaging and creating demand for its products from Tier 1 system providers and vehicle manufacturers. Its approach is the ideal way to harden vehicles against cyberattacks."