Startup Cynomi Raises $37 Million to Protect SMBs from Cybersecurity Attacks

Cybersecurity attacks on small and medium businesses have been on the rise, with one in three breached last year. In response to this trend, Cynomi, a startup, has secured $37 million in funding led by Insight Partners and Entrée Capital, along with participation from Canaan, Flint Capital, and S16VC. This round brings the total funding to approximately $60 million, with a post-money valuation exceeding $140 million.

Cynomi, based in London and Tel Aviv, was founded by CEO David Primor and COO Roy Azoulay. The company's product is described as a 'virtual CISO,' using AI to help SMBs understand and manage their security operations. Cynomi's ARR has tripled in the last year, with over 100 service providers and consultancies reselling its services to thousands of SMB customers, primarily in the U.S. The funding will fuel further R&D and business development to capitalize on the growing opportunity in the cybersecurity consulting space, which is estimated to be a $163 billion industry.

Cynomi is aiming to expand its reach to Europe and other markets. The startup's approach differentiates it in a crowded market, which includes competitors like Vanta, Cohere, Qualys, Coro, Bastion, Guardz, CyberSmart, Cowbell, and DataGuard. The investor, Insight Partners, believes that Cynomi is defining a new category with its 'vCISO' platform, and the focus on working with managed service providers allows for customization and differentiation of its offering.