Cynomi operates on a partner-based business model, collaborating with managed service providers (MSPs) and managed security service providers (MSSPs), which allows it to scale its customer base effectively.

Cynomi, a cybersecurity startup founded in 2021, has successfully secured $37 million in funding to enhance its AI-powered platform aimed at small and medium-sized businesses (SMBs) amid escalating cyber threats.

Cynomi addresses the unique cybersecurity challenges faced by SMBs, offering a virtual CISO service priced between $10,000 and $12,000 annually, making it a cost-effective alternative to hiring a full-time CISO.

With the increasing demand for cybersecurity and compliance services, especially among SMBs lacking internal resources, Cynomi is well-positioned to capitalize on this market trend.

The company plans to use the new funding to invest in research and development, expand its services to a broader range of providers, and strengthen its market presence in Europe and globally.

This funding round, co-led by Insight Partners and Entrée Capital, along with support from existing investors like Canaan and Flint Capital, has elevated Cynomi's post-money valuation to over $140 million.

David Primor, the co-founder and CEO of Cynomi, stated that the new funding will bolster cybersecurity capabilities and assist service providers in delivering superior cybersecurity services, potentially increasing productivity by over 70%.

Approximately 80% of Cynomi's business is concentrated in the U.S., where it markets its services through MSPs rather than directly to end-users.

Cynomi has reported remarkable growth, tripling its annual recurring revenue (ARR) in 2024, following a 4.5x growth in the previous year.

The platform is designed to enable service providers to enhance their clients' security posture while increasing productivity and service quality, significantly reducing manual work by up to 70%.

The company is committed to supporting the cybersecurity community through initiatives like the vCISO Academy and vCISO Directory, which provide valuable resources and education for professionals.

Cynomi competes with other cybersecurity startups targeting SMBs, such as Vanta and Qualys, which also leverage MSP channels for service delivery.