Cynomi cinches $37M for its AI-based ‘virtual CISO’ for SMB cybersecurity

Tech Crunch - Apr 23rd, 2025

Cynomi, a cybersecurity startup, has raised $37 million in funding to enhance its AI-driven 'virtual CISO' platform aimed at protecting small and medium businesses (SMBs) from increasing cyber threats. The funding round was co-led by Insight Partners and Entrée Capital, with participation from previous investors like Canaan and Flint Capital. Cynomi's platform uses AI to provide SMBs with automated security management, offering services like network assessment, policy planning, and vulnerability analysis. The company's business model involves reselling its services through managed service providers, allowing for tailored solutions for SMBs.

Cynomi's rise comes as SMBs, which make up 90% of global businesses, face heightened cybersecurity risks but often lack resources for extensive protection. The startup's approach of using AI as a cost-effective alternative to human CISOs has proven effective, with annual recurring revenue tripling and partnerships with major providers like Deutsche Telekom. With $140 million in post-money valuation, Cynomi plans to expand its market reach beyond the U.S. to Europe and other regions, aiming to establish itself as a comprehensive operating system in the $163 billion cybersecurity consulting space.

Ai Technology Cybersecurity Funding Sm Bs Cynomi Virtual Ciso Insight Partners Entrée Capital David Primor Roy Azoulay

Story submitted by Fairstory

RATING

7.6

Fair Story

Consider it well-founded

The article provides a comprehensive overview of Cynomi's recent funding round and its position in the cybersecurity market. It excels in clarity and timeliness, offering a clear and current account of developments in the industry. The use of credible sources and the focus on a relevant topic contribute to its overall strength. However, the article could benefit from greater transparency regarding certain claims and a more balanced representation of perspectives. While it effectively engages readers interested in cybersecurity and investment, its impact and public interest appeal are somewhat limited to industry stakeholders. Overall, the article is a well-written piece that provides valuable insights into a growing area of the cybersecurity market.

Accuracy

The article accurately reports on Cynomi's $37 million funding round, the involvement of Insight Partners and Entrée Capital, and the participation of previous investors. It correctly identifies the founders and their backgrounds, as well as the company's focus on AI-based virtual CISO services. However, the claim that 1 in 3 SMBs were breached last year requires verification, as does the assertion about the cybersecurity consulting market size. The article's factual claims are generally well-supported, but some statistics and market data need further corroboration.

Balance

The article primarily presents the perspective of Cynomi and its investors, highlighting the company's growth and market strategy. While it mentions competitors, it does not provide detailed insights into their offerings or market positions. The focus is heavily on Cynomi's advantages and potential, which may overshadow other viewpoints. Including perspectives from cybersecurity experts or SMBs could have provided a more balanced view of the market dynamics and challenges.

Clarity

The article is clearly written, with a logical flow and well-structured presentation of information. It effectively explains complex concepts like AI-based virtual CISO services in an accessible manner. The language is neutral and professional, making the content easy to understand for readers with varying levels of familiarity with cybersecurity topics. The clarity of the article is one of its strengths.

Source quality

The article cites credible sources, including statements from Cynomi's CEO and COO, and references to investors like Insight Partners. These sources are authoritative and relevant to the topic. However, the article could benefit from additional independent sources to validate claims about market trends and the competitive landscape. The reliance on company and investor perspectives may introduce some bias, but overall, the source quality is strong.

Transparency

The article provides some context about Cynomi's business model and market strategy, but it lacks detailed explanations of how specific claims were derived, such as the breach rate for SMBs. The methodology behind market size estimates is not disclosed, and potential conflicts of interest, such as investor influence, are not addressed. Greater transparency in these areas would enhance the article's credibility.