Cynomi, a cybersecurity startup providing AI-driven “virtual CISO” services for small and medium-sized businesses (SMBs), has secured $37 million in a Series B funding round. The investment, co-led by Insight Partners and Entrée Capital, pushes the company’s post-money valuation beyond $140 million as it looks to address the rising tide of data breaches targeting smaller enterprises.
Addressing the SMB Security Gap
Recent data indicates that one in three small businesses suffered a data breach last year. As hackers shift their focus from large corporations to the “long tail” of the market—which accounts for 90% of businesses globally—SMBs are increasingly seeking proactive defense mechanisms. However, these organizations often lack the budget and manpower required to employ full-time security leadership.
Cynomi offers an automated alternative. According to COO Roy Azoulay, a human CISO can cost 10 to 15 times more than the company’s automated platform, which starts at approximately $10,000 to $12,000 annually. The platform provides 24/7 coverage, network assessment, security policy planning, and automated remediation tracking.
Strategic Growth and Market Expansion
Founded by CEO David Primor, a former CTO for the Israel Defense Forces, and COO Roy Azoulay, an Oxford University incubator pioneer, Cynomi operates out of London and Tel Aviv. The company has seen its annual recurring revenue triple over the past year, supported by a network of over 100 service providers and consultancies, including major telecommunications firms like Deutsche Telekom.
Currently, 80% of the company’s customer base is concentrated in the United States. With the new capital injection, Cynomi plans to accelerate R&D and expand its footprint into European and other global markets.
Building an Operating System for Cybersecurity
Rather than selling directly to end-users, Cynomi partners with Managed Service Providers (MSPs). This model allows the platform to be tailored to the specific needs of different industries while helping MSPs provide high-impact security management.
Philine Huizing, managing director at Insight Partners, noted that the firm invested because Cynomi is effectively “defining a new category” with its vCISO platform. The startup aims to evolve beyond simple automation, positioning itself as the central “operating system” for the $163 billion cybersecurity consulting market.
The company enters a competitive landscape that includes established players such as Vanta, Cohere, and Qualys. By focusing on the unique integration needs of MSPs, Cynomi aims to remain a critical infrastructure layer rather than a commoditized service.