Test of Things, a Finland-based provider of an automated cloud platform for cybersecurity compliance in IoT and IIoT products, has raised €1.2 million ($1.4 million) in pre-seed funding led by Vendep Capital. The platform supports standards including IEC 62443, EU Radio Equipment Directive (RED), Cyber Resilience Act (CRA), and EN 18031 through AI-guided workflows, continuous monitoring, and end-to-end lifecycle management. The capital will accelerate platform development and expand the engineering team.
CRA Deadlines Drive Compliance Demand
The raise arrives ahead of the EU Cyber Resilience Act's vulnerability reporting mandate starting September 11, 2026 per EU policy site. IoT manufacturers face fines up to €15 million or 2.5% of revenue for non-compliance. Test of Things positions its automation to address these pressures, differentiating from OT visibility tools like Claroty and Nozomi Networks.
Overlapping Standards Overwhelm Manufacturers
IoT cybersecurity involves 2,243 individual requirements across 16 major sources, with up to 23% unique to specific standards. Current manual processes take an average of 41 months, leaving 86% of manufacturers unprepared for CRA enforcement. Additionally, 61% of IoT devices remain unpatched, amplifying risks from cloud backends and apps beyond just devices.
AI Automates Full-Stack Testing
Test of Things' cloud platform covers the entire IoT stack—devices, cloud services, web interfaces, mobile apps, and network topology—with automated testing for authentication, SBOM, data encryption, and more. It enables self-certification for multiple stakeholders including manufacturers and resellers. Unlike detection-focused competitors such as Dragos and Finite State, it emphasizes breadth-first compliance across IEC 62443, CRA, and RED.
As Rauli Kaksonen, CTO and co-founder, noted:
"This investment will let us focus on building the product further and start helping manufacturers to achieve their customers’ and authorities’ trust with secure products."
Vendep Capital Backs Serial Founders
Vendep Capital led the round, joined by angels Aapo Oksman, Zach Shelby, Neil Costigan, and Ääkköset Oy, plus Business Finland support. This mix signals strong conviction in EU regulatory tailwinds. The funding validates the team's expertise from prior exits in testing and security tools.
IoT Security Market Accelerates Growth
The global IoT security market will expand from $11.22 billion in 2025 to $14.86 billion in 2026, a 32.5% year-over-year increase according to market research. Regulatory shifts like CRA and RED enforcement since August 2025 fuel this growth, as AI threats target IoT networks per the WEF Global Cybersecurity Outlook 2026.
Exits Fuel Repeat Success
Co-founders Marko Kaasila and Rauli Kaksonen bring proven track records. Kaasila co-founded Bitbar, a mobile testing SaaS acquired by SmartBear in 2019 after his CEO tenure. Kaksonen co-founded Codenomicon, cybersecurity fuzzing pioneer acquired by Synopsys in 2015, and holds a PhD in IoT cybersecurity from the University of Oulu. Their exits in adjacent testing and security spaces position Test of Things for rapid scaling from its 7-person Helsinki- and Oulu-based team founded in 2024.
Engineering Hires Target Expansion
Plans include growing the engineering team with full-stack developers, DevOps engineers, and summer trainees focused on security assessment and compliance tools. EU co-funding already supports RED/CRA prototypes. Recent activity shows hiring momentum since 2024, aligning with platform acceleration post-funding.