- Cynomi raised $37M in Series B funding to enhance AI-based cybersecurity for SMBs.
- Its “virtual CISO” platform helps small businesses manage security affordably.
- The company partners with service providers like Deutsche Telekom to reach SMBs.
- Funding will support R&D and expansion into Europe and other markets.
Small and medium businesses (SMBs) are increasingly under fire from cyberattacks, with one in three experiencing a breach last year. As these businesses strive to protect themselves, a startup named Cynomi is stepping up to meet the challenge.
The London and Tel Aviv-based company has just secured $37 million in a Series B funding round, led by Insight Partners and Entrée Capital, with participation from Canaan, Flint Capital, and S16VC. This follows a $23 million raise, including a seed round in 2022, and sources indicate Cynomi’s valuation now exceeds $140 million post-funding.
Founded by CEO David Primor, a former CTO and R&D head for the Israeli Defense Forces, and COO Roy Azoulay, a serial entrepreneur with a background in deepfake detection and startup incubation at Oxford University, Cynomi is leveraging artificial intelligence to transform cybersecurity for SMBs.
Unlike traditional AI tools that assist with tasks, Cynomi’s platform acts as a “virtual CISO” (Chief Information Security Officer). This AI-driven decision-maker helps smaller organizations manage their security operations without the hefty costs of hiring a full-time expert.
Cynomi’s virtual CISO assesses networks, crafts tailored security policies, tracks progress, analyzes vulnerabilities, and generates detailed reports on network health. While it doesn’t yet handle remediation directly, it provides actionable plans to address risks.
The platform is distributed through third-party service providers, such as managed service providers (MSPs) and consultancies, which SMBs already rely on for network connectivity and IT services. This approach ensures seamless integration into existing workflows.
The need for such a solution is clear. SMBs, which make up 90% of global businesses, are now prime targets for hackers who use AI and automation to exploit vulnerabilities at scale. Unlike larger enterprises, SMBs often lack the budget and expertise to combat these threats effectively.
Hiring a human CISO can cost upwards of $120,000 annually, while Cynomi’s virtual CISO starts at just $10,000 to $12,000 a year. This affordability, combined with 24/7 availability, makes it a game-changer for resource-strapped businesses.
Cynomi’s growth reflects the demand. Its annual recurring revenue has tripled in the past year, and the company now partners with over 100 service providers, including major players like Deutsche Telekom.
These partners resell Cynomi’s services to tens of thousands of SMB customers, with 80% of its client base in the U.S. The company plans to expand into Europe and other markets, using the new funding for research and development and business growth.
The broader cybersecurity consulting market, valued at $163 billion, lacks a unified “operating system,” according to Azoulay. Cynomi aims to fill this gap, positioning itself as a comprehensive platform for SMB cybersecurity.
While competitors like Vanta, Qualys, Coro, and Guardz also target SMBs through service providers, Cynomi’s virtual CISO concept sets it apart. Philine Huizing, managing director at Insight Partners, emphasized that Cynomi is “defining a new category” with its innovative approach.
By partnering with MSPs, Cynomi enables providers to customize security strategies for each client’s needs, enhancing their impact. This flexibility ensures the platform isn’t just another off-the-shelf solution but a tailored tool that adapts to diverse industries.
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