Cyberattacks targeting small and medium-sized businesses (SMBs) are on the rise, with one in three SMBs suffering a data breach last year. As these businesses become more proactive about cybersecurity, startup Cynomi is stepping in with a new solution — and $37 million in fresh funding to grow it.
The Series B round was co-led by Insight Partners and Entrée Capital, with continued support from existing investors Canaan, Flint Capital, and S16VC. According to sources familiar with the deal, Cynomi’s post-money valuation now exceeds $140 million.
Founded by CEO David Primor and COO Roy Azoulay, Cynomi is based in London and Tel Aviv. Primor, a former CTO and head of R&D for the Israel Defense Forces, and Azoulay, who launched Oxford University’s first startup incubator, created Cynomi to address the widening cybersecurity gap in the SMB market.
Virtual CISO for Small Businesses
Cynomi’s core offering is a “virtual CISO” — an AI-powered platform that acts like a Chief Information Security Officer. This tool helps SMBs manage cybersecurity operations that would otherwise require expensive, full-time experts.
The AI platform can perform a wide range of tasks: it assesses network security, builds security policies, creates remediation plans, tracks improvements, runs vulnerability scans, and generates reports. It’s designed to give SMBs enterprise-grade protection at a fraction of the cost.
Instead of selling directly to businesses, Cynomi partners with managed service providers (MSPs), who already supply SMBs with IT and connectivity services. This go-to-market strategy has helped the company scale quickly, with over 100 partners — including telecom giants like Deutsche Telekom — now reselling its services.
“Hiring a full-time CISO would cost 10 to 15 times more than using Cynomi,” Azoulay noted. “And unlike a human, our platform is available year-round, around the clock.”
Cynomi Strong Traction and Future Ambitions
Cynomi has seen its annual recurring revenue triple in the past year. The majority of its business — around 80% — comes from the U.S., but the company now plans to expand across Europe and into new markets.
The recent funding will be used to enhance research and development as well as support global expansion. Primor and Azoulay believe that Cynomi’s “virtual CISO” is just the beginning.
They see a much larger opportunity in becoming the “operating system” for cybersecurity consulting — a $163 billion industry that, they argue, lacks a standardized platform.
As cybersecurity startups continue to flood the market — including names like Vanta, Guardz, and DataGuard — Cynomi aims to stand out by focusing on MSP partnerships and highly customizable services.
Philine Huizing, managing director at Insight Partners, said that Cynomi’s concept of a virtual CISO was the deciding factor for their investment. “Cynomi is defining a new category,” she said. “Their ability to work with MSPs to tailor services for specific industries and risks is a major advantage.”
