Cynomi Secures $37 Million to Revolutionize Cybersecurity for SMBs
In light of escalating threats, small and medium-sized businesses (SMBs) are increasingly vulnerable to cybersecurity breaches, with a staggering one in three reporting an incident last year. To address this pressing issue, London and Tel Aviv-based startup Cynomi has announced a funding round of $37 million, aimed at enhancing the capability of SMBs to detect and combat cyber threats.
Funding and Investors
The latest investment round is co-led by Insight Partners and Entrée Capital, with contributions from previous investors Canaan, Flint Capital, and S16VC. Cynomi has now raised approximately $60 million since its inception, reflecting a post-money valuation exceeding $140 million.
Leadership Background
Cynomi was co-founded by David Primor, who holds a PhD and previously served as the CTO and head of R&D for the Israeli Defense Forces, and Roy Azoulay, who has extensive experience in the startup ecosystem, including leading an innovative deepfake detection company and establishing a startup incubator at Oxford University.
The Role of AI in Cybersecurity
Cynomi’s approach to cybersecurity is driven by advanced AI technology. CEO David Primor articulates the service as a “virtual CISO,” which automates and enhances security decision-making for smaller organizations. This innovative model leverages AI not just as an assistant, but as a critical decision-maker.
Capabilities of Cynomi’s Virtual CISO
Cynomi’s product is designed to execute various essential functions, including:
- Assessing network vulnerabilities.
- Establishing comprehensive security policies.
- Creating detailed remediation plans.
- Tracking the implementation of security measures.
- Running vulnerability analyses.
- Generating reports on network health and security status.
Importantly, Cynomi sells this service through managed service providers (MSPs) rather than directly to SMBs, ensuring scalability and accessibility for smaller enterprises.
Addressing the SMB Cybersecurity Gap
The shift in focus to SMBs by cybercriminals is notable, as these businesses represent approximately 90% of all enterprises globally. Traditionally seen as less lucrative, SBCs have become more attractive targets due to their collective size and vulnerabilities.
Roy Azoulay pointed out that hiring a human CISO can cost upwards of $120,000 annually, whereas Cynomi’s virtual CISO service offers access to comprehensive security solutions at a fraction of that cost, starting at around $10,000 to $12,000 per year.
Growth and Market Strategy
The demand for Cynomi’s services is evident; the company’s Annual Recurring Revenue (ARR) has tripled within the last year. Currently, over 100 service providers, including major telecom companies like Deutsche Telekom, are reselling Cynomi’s offerings, primarily targeting the U.S. SMB market with plans for expansion into Europe and beyond.
Future Aspirations
The recent funding will be directed toward further research and development initiatives, as Cynomi envisions becoming an integral operating system within the cybersecurity consulting landscape, which is valued at $163 billion. Azoulay emphasizes that existing cybersecurity frameworks lack a unified operational approach, a gap Cynomi aims to fill.
Industry Context and Competitors
Cynomi is not alone in targeting the SMB cybersecurity market. Competitors include Vanta, Cohere, and Qualys, among others, each vying for a share of this burgeoning sector. However, Cynomi’s model, particularly its collaboration with MSPs, provides a tailored service that stands apart in a crowded market.
