Cybercriminals are shifting their focus. More small and midsize businesses (SMBs) are under attack—one in three faced a breach last year alone. As the threats grow, so does the need for smarter, scalable defense. Cynomi, a startup with offices in London and Tel Aviv, just raised $37 million to help meet that demand with its AI-powered “virtual CISO” platform.
The new funding round was co-led by Insight Partners and Entrée Capital. Existing backers Canaan, Flint Capital, and S16VC also joined. This brings Cynomi’s total funding to over $60 million, pushing its post-money valuation past $140 million, according to insiders.
Cynomi was founded by cybersecurity veterans. CEO David Primor once served as CTO of the Israeli Defense Forces. COO Roy Azoulay launched one of Oxford University’s first startup incubators and previously built a deepfake detection company. Their combined experience gives Cynomi a unique edge in a fast-changing threat landscape.
Unlike many tools that assist security teams, Cynomi goes a step further. It acts as an automated Chief Information Security Officer—a virtual CISO. This AI-driven system helps SMBs run their security operations with fewer resources. It handles tasks like assessing risks, drafting policies, recommending fixes, tracking progress, and generating clear reports.
Rather than selling directly to businesses, Cynomi works through managed service providers (MSPs). These partners already handle tech needs for SMBs. Now, over 100 of them, including Deutsche Telekom, offer Cynomi’s platform to their clients. Most of its customers are in the U.S., but the company is now expanding into Europe and beyond.
Hiring a full-time human CISO can be expensive. Cynomi offers a more affordable option. Its virtual CISO service starts at around $10,000 per year. That’s a fraction of what a full-time expert would cost. Plus, it works around the clock, all year.
This pricing—and always-on availability—has fueled growth. Cynomi tripled its annual recurring revenue last year. The company believes it’s only getting started.
Its bigger goal? Becoming the go-to platform for cybersecurity consulting. The market is worth over $160 billion, but it lacks a standard operating system. Cynomi wants to fill that gap.
Plenty of companies are chasing the SMB security space. But few take Cynomi’s approach. Competitors like Guardz, Vanta, Cowbell, Coro, and CyberSmart offer various tools. Still, it’s Cynomi’s “virtual CISO” concept that stands out.
That’s what caught the eye of Insight Partners. Managing Director Philine Huizing said Cynomi isn’t just another security platform. It’s shaping a whole new category.
By teaming up with MSPs, the platform can adapt to specific client needs. It works across industries and adds value beyond basic protection. That flexibility helps service providers stand out in a crowded field.
With fresh funding, Cynomi plans to ramp up product development and expand its reach. Its mission remains clear: to make enterprise-grade cybersecurity accessible to every small business.
