Cynomi Secures $37M to Revolutionize SMB Cybersecurity with AI-Driven Virtual CISO
Small and medium businesses (SMBs) are increasingly becoming prime targets for cybersecurity attacks, with statistics revealing that one in three were breached last year. In response to this growing threat, a startup named Cynomi has secured $37 million in funding, aiming to enhance cybersecurity measures for SMBs. This funding round highlights the urgent need for improved security solutions tailored to the unique challenges faced by smaller enterprises.
Funding Details and Background of Cynomi
Co-led by Insight Partners and Entrée Capital, this funding round also saw participation from existing investors including Canaan, Flint Capital, and S16VC. Cynomi had previously raised approximately $23 million, with a current post-money valuation exceeding $140 million.
Founders’ Expertise
Cynomi was established by David Primor, CEO and former CTO of the Israeli Defense Forces, and Roy Azoulay, COO and seasoned entrepreneur with experience in deepfake detection technology and startup incubation at Oxford University. Their combined expertise in cybersecurity and market dynamics positions Cynomi uniquely in the tech landscape.
Cynomi’s Innovative Approach to Cybersecurity
At its core, Cynomi leverages artificial intelligence to offer a novel solution to cybersecurity challenges faced by SMBs. Rather than merely acting as a copilot, Cynomi provides a “virtual CISO”—a sophisticated, automated decision-making tool that aids smaller organizations in managing their security operations effectively.
Key Features of Cynomi’s Virtual CISO
The virtual CISO encompasses a range of functionalities:
- Network Assessment: Evaluates the company’s network for vulnerabilities.
- Security Policy Planning: Develops tailored security policies.
- Remediation Planning: Offers strategies to address identified issues.
- Progress Tracking: Monitors the implementation of security measures.
- Vulnerability Analytics: Analyzes networks to pinpoint weaknesses.
- System Optimization Recommendations: Suggests improvements to enhance security.
- Reporting: Generates comprehensive reports on network health.
Importantly, Cynomi’s services are not sold directly to SMBs; instead, they are distributed through third-party service providers that SMBs often rely on for network connectivity and managed services.
The Growing Need for Cybersecurity Solutions
The market gap that Cynomi addresses is significant, as cybercriminals have shifted their focus from large corporations to the more vulnerable SMBs. These businesses represent approximately 90% of global enterprises, making them an attractive target for hackers utilizing automated techniques.
Cost-Effective Security Options for SMBs
According to Azoulay, “A virtual CISO service can start at $10,000 to $12,000 a year, whereas hiring a human CISO could cost significantly more, about 10 to 15 times higher.” This cost-effective alternative enables SMBs to access expert cybersecurity knowledge without the hefty price tag associated with traditional solutions.
Growth and Future Plans
Cynomi has experienced remarkable growth, with its annual recurring revenue (ARR) tripling in the past year. The startup now collaborates with over 100 service providers, including major telecommunications companies like Deutsche Telekom, to deliver its services to tens of thousands of SMB customers. Currently, around 80% of its clientele is based in the U.S., but Cynomi plans to expand its reach into Europe and other markets.
With the newly acquired funding, Cynomi aims to enhance research and development efforts, believing there is a larger opportunity beyond just offering virtual CISO services. Azoulay states, “The cybersecurity consulting space is a $163 billion market, and we envision Cynomi as the operating system for this sector.”
Competitive Landscape
The cybersecurity industry is rapidly evolving, with numerous companies targeting SMBs. Competitors such as Vanta, Cohere, Qualys, and others are also vying for market share. However, Cynomi’s unique approach of partnering with managed service providers sets it apart, allowing for tailored solutions that meet the specific needs of different industries.
Philine Huizing, Managing Director at Insight Partners, highlighted the potential of Cynomi’s vCISO platform, stating, “We believe Cynomi is defining a new category with its vCISO offering.” This innovative focus on collaboration with managed service providers enables Cynomi to deliver customized solutions that stand out in a crowded marketplace.
For more information on cybersecurity solutions tailored for SMBs, visit our dedicated page.
