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Cynomi cinches $37M for its AI-based ‘virtual CISO’ for SMB cybersecurity
Cynomi has raised $37 million in funding to enhance its AI-driven virtual CISO service aimed at small and medium businesses (SMBs), responding to a rise in cyber threats. With a valuation surpassing $140 million, Cynomi's platform helps SMBs manage cybersecurity operations at a fraction of the cost of hiring a human CISO, significantly expanding its customer base and plans for further R&D and market expansion.
Key points
- Cynomi raised $37 million in a Series B funding round led by Insight Partners and Entrée Capital.
- 1 in 3 SMBs faced cybersecurity breaches last year, prompting increased demand for cybersecurity solutions.
- Cynomi offers a virtual CISO, which is an AI-based tool that helps businesses manage their cybersecurity policies and assessments.
- The company has tripled its annual recurring revenue (ARR) and has over 100 service provider partners reselling its services.
- Cynomi aims to further develop its business in the cybersecurity consulting market, projected at $163 billion.
Why it matters
- The rise in cybersecurity threats to SMBs aligns with trends in the IT industry where AI and automated systems are increasingly used to enhance security measures.
- The virtual CISO model addresses the gap for smaller companies lacking budgets for traditional cybersecurity leadership, reflecting a growing recognition of the importance of cybersecurity for all business sizes.
Cynomi's innovative approach to providing AI-driven cybersecurity solutions for SMBs positions it well in a growing market and highlights a significant shift towards affordable security measures in the IT landscape.