Thanks to advances in AI, small and medium businesses have become a significant target in the world of cybercrime, accounting for roughly half of all breaches worldwide by some estimates. Now, one of the companies building security tools for SMBs has raised a round of funding to expand its business, underscoring the demand in the market for better defenses.
Key Takeaway
Guardz, with its AI-based security platform, has secured
8 million in funding to expand its services for small and medium businesses, highlighting the growing demand for better cybersecurity defenses in this market segment.
Guardz’s Latest Funding Round
Guardz, an Israeli startup, has raised another $18 million in a Series A round of funding. The company emerged from stealth less than a year ago and has since shifted its focus to working with managed service providers (MSPs) to sell and manage its security and cyberinsurance service for small and medium businesses. The funding will be used to hire more engineering talent to continue evolving the Guardz product, which has been selling primarily to customers in the U.S., U.K., and Australia.
Partnerships and Growth
Guardz is working with around 200 MSPs, which in turn are serving some 3,000 SMBs, representing approximately 36,000 seats overall using Guardz’s products. The company’s main revenue driver is security, with cyber insurance available as an optional add-on. The funding round was led by Glilot+, the early growth fund of Glilot Capital Partners, with ClearSky and previous backers also participating.
Market Opportunity and Competition
The gap in the market that Guardz is targeting is significant, as SMBs have historically been overlooked by cybercriminals and technology developers. However, with the increasing sophistication of bad actors, Guardz aims to provide a robust security platform for SMBs using AI-based automation and managed services. The company faces competition from other players in the cybersecurity space targeting SMBs, such as CyberSmart, CrowdStrike, and Check Point.
