In an era where small and medium-sized businesses (SMBs) are increasingly targeted by cyber threats, Cynomi, a pioneering cybersecurity firm, has successfully raised $37 million in a Series B funding round. This investment, co-led by Insight Partners and Entrée Capital, with participation from existing investors Canaan, Flint Capital, and S16VC, values the company at over $140 million post-money. The funding aims to bolster Cynomi’s AI-driven virtual Chief Information Security Officer (vCISO) platform, designed to provide SMBs with enterprise-level cybersecurity solutions at a fraction of the cost.
Addressing the Cybersecurity Gap in SMBs
SMBs constitute approximately 90% of businesses globally, making them a lucrative target for cybercriminals. Despite their prevalence, many lack the resources to implement robust cybersecurity measures, leaving them vulnerable to attacks. Cynomi’s AI-powered vCISO platform addresses this gap by automating the roles and responsibilities traditionally handled by a human CISO. This includes network assessment, policy planning, remediation strategies, vulnerability analysis, system optimization recommendations, and comprehensive reporting.
The Evolution of Cynomi
Founded in 2021 by CEO David Primor, a former Lt. Colonel in Israel’s elite Unit 8200 and ex-Technology Executive Director of Israel’s cyber authority, and COO Roy Azoulay, a serial entrepreneur who established Oxford University’s startup incubator, Cynomi has rapidly emerged as a leader in the cybersecurity domain. The company’s innovative approach combines AI algorithms with CISO-level expertise to deliver scalable and cost-effective cybersecurity solutions tailored for SMBs.
In its initial seed funding round in 2022, Cynomi secured $3.5 million, followed by a $20 million Series A round in April 2024. The latest $37 million Series B funding underscores the growing demand for accessible and efficient cybersecurity solutions among SMBs.
Strategic Partnerships and Market Expansion
Cynomi’s business model focuses on collaborating with Managed Service Providers (MSPs) and Managed Security Service Providers (MSSPs) to deliver its vCISO services. This channel-based approach has proven effective, with over 100 service providers, including major telecommunications companies like Deutsche Telekom, integrating Cynomi’s platform to enhance their cybersecurity offerings.
The company’s growth trajectory is impressive, with annual recurring revenue tripling in the past year. Currently, 80% of its clientele is based in the United States. With the new funding, Cynomi plans to expand its reach into European and other international markets, aiming to empower more SMBs with robust cybersecurity defenses.
The Value Proposition of AI-Powered vCISO
Traditional in-house CISOs can be prohibitively expensive for SMBs, often costing between $120,000 to $180,000 annually. In contrast, Cynomi’s virtual CISO service offers a more affordable alternative, starting at approximately $10,000 to $12,000 per year. This cost-effective solution provides SMBs with continuous, expert-level cybersecurity management without the financial burden of a full-time executive.
The platform’s AI capabilities ensure that cybersecurity strategies are not only automated but also tailored to the specific needs and vulnerabilities of each client. By leveraging real-time threat intelligence, industry benchmarks, and comprehensive network assessments, Cynomi’s vCISO delivers proactive and adaptive security measures.
Industry Recognition and Future Outlook
The cybersecurity landscape is witnessing a significant shift towards automation and AI-driven solutions. Cynomi’s innovative approach has garnered attention and validation from industry leaders and investors alike. The recent funding round is a testament to the company’s potential to redefine cybersecurity management for SMBs.
Looking ahead, Cynomi plans to invest in research and development to further enhance its platform’s capabilities. Additionally, the company aims to strengthen its partnerships with MSPs and MSSPs, enabling them to offer comprehensive cybersecurity services that address the evolving threat landscape.
Conclusion
As cyber threats continue to evolve and target businesses of all sizes, the need for accessible and effective cybersecurity solutions becomes paramount. Cynomi’s AI-powered vCISO platform represents a significant advancement in empowering SMBs to protect their digital assets. With the recent $37 million funding, the company is well-positioned to expand its impact, ensuring that SMBs worldwide have the tools and expertise necessary to navigate the complexities of cybersecurity.
