Small and medium-sized businesses increasingly face cybersecurity challenges, with recent statistics showing one-third of SMBs experienced data breaches in the past year. To address this growing threat, startups are stepping up with innovative solutions tailored for resource-constrained organizations. Among them, Cynomi, a cybersecurity firm specializing in AI-driven tools, has secured $37 million in Series B funding to expand its virtual Chief Information Security Officer (vCISO) platform.
The funding round was co-led by Insight Partners and Entrée Capital, with participation from existing investors Canaan Partners, Flint Capital, and S16VC. Sources indicate the company’s valuation now exceeds $140 million following the investment. This latest capital infusion builds on Cynomi’s earlier $23 million seed round, accelerating its mission to democratize enterprise-grade cybersecurity for smaller organizations.
Founded by cybersecurity veterans David Primor and Roy Azoulay, Cynomi combines military-grade expertise with academic innovation. Primor, previously CTO and head of R&D for the Israel Defense Forces, partnered with Azoulay—an Oxford University startup incubator founder—to create an AI platform that replicates the decision-making capabilities of human CISOs. The system automates complex security processes, including network assessments, vulnerability detection, policy implementation, and compliance reporting.
Unlike traditional cybersecurity solutions requiring significant IT resources, Cynomi’s vCISO platform integrates seamlessly with managed service providers (MSPs) and telecommunications companies. Partners like Deutsche Telekom already leverage the technology to serve thousands of SMB clients, particularly in North America where 80% of current users reside. The new funding will support European expansion and product development.
The platform’s value proposition centers on accessibility and cost efficiency. At $10,000–$12,000 annually, Cynomi’s solution costs roughly 10–15% of hiring a full-time CISO while maintaining 24/7 availability. This pricing strategy has driven triple-digit annual recurring revenue growth, according to company executives.
While competitors like Vanta, Qualys, and Coro target similar markets, Cynomi differentiates through its focus on becoming the “operating system” for cybersecurity consulting—a $163 billion industry lacking centralized technological infrastructure. The platform allows MSPs to customize security frameworks by industry and client risk profile while automating routine tasks.
Investors highlight Cynomi’s unique positioning in the cybersecurity landscape. Philine Huizing of Insight Partners noted the platform’s potential to create a new category in virtual security leadership, emphasizing its adaptability through MSP partnerships. This collaborative approach enables service providers to enhance existing offerings rather than replace them, reducing commoditization risks.
Future development efforts will focus on enhancing AI capabilities and expanding the platform’s scope beyond vCISO functions. Company leadership envisions creating a comprehensive cybersecurity management ecosystem that empowers SMBs to mitigate evolving digital threats without requiring specialized in-house expertise.
