Small and medium businesses (SMBs) are increasingly falling prey to cybersecurity threats, with reports indicating that one-third experienced data breaches in the past year. In response to this growing concern, the startup Cynomi has secured $37 million in funding to enhance security solutions tailored for SMBs.
Cynomi’s Series B funding round was co-led by Insight Partners and Entrée Capital, with participation from previous investors such as Canaan, Flint Capital, and S16VC. The funding elevates the company’s valuation to over $140 million post-money. Prior to this, Cynomi had raised approximately $23 million, including a seed round in 2022.
Founded by CEO David Primor, a former CTO with the Israel Defense Forces, and COO Roy Azoulay, who established the first startup incubator at Oxford University, Cynomi is headquartered in London and Tel Aviv. The company focuses on utilising AI-driven agents to streamline complex tasks in cybersecurity, positioning itself as a “virtual Chief Information Security Officer” (vCISO). This innovative approach allows smaller organisations to effectively manage their cybersecurity operations without the overhead costs associated with hiring a full-time CISO.
Cynomi’s vCISO can execute multiple functions, including network assessments, policy planning, vulnerability tracking, and generating health reports. Rather than selling directly to SMBs, Cynomi partners with third-party service providers that clients already engage for managed services.
The shift in the cyber threat landscape has seen malicious attackers focus on SMBs, which dominate the market, accounting for roughly 90% of all businesses globally. This trend highlights a significant opportunity for Cynomi. Azoulay noted that while traditional vCISO services can cost upwards of $10,000 to $12,000 annually, a human CISO often demands significantly higher fees. Cynomi’s model offers a cost-effective solution tailored to the unique constraints of SMBs.
Cynomi has reportedly tripled its annual recurring revenue in the past year and has partnered with over 100 service providers, including major telecommunications firms like Deutsche Telekom, reaching thousands of SMB clients, primarily in the US, with plans to expand into European markets.
The funding will be allocated toward research and development as the startup aims to develop broader solutions for the cybersecurity consulting sector, a market valued at $163 billion. Azoulay expressed that Cynomi aspires to become the central operating system for this industry.
Cynomi operates in a competitive landscape that includes numerous cybersecurity firms targeting SMBs, many of which leverage service providers for distribution. Philine Huizing from Insight Partners highlighted that Cynomi’s vCISO platform is creating a new category in cybersecurity, emphasising the potential for tailored solutions that meet individual client risks and needs, making managed service providers pivotal to the delivery and effectiveness of Cynomi’s offerings.
Fanpage: TechArena.au
Watch more about AI – Artificial Intelligence
