The advent of artificial intelligence has significantly changed the landscape of cyber security, with small and medium-sized businesses (SMBs) finding themselves increasingly in the crosshairs of cybercriminals. These SMBs account for nearly half of all reported breaches globally. In an effort to bolster defenses for these vulnerable entities, Guardz, an Israeli startup specializing in integrated security and cyber insurance solutions for SMBs, has successfully raised $18 million in a Series A funding round. This substantial investment marks a significant step in the company’s mission to provide comprehensive protection for businesses that often lack the resources of their larger counterparts.
Originally targeting SMBs directly, Guardz has recently pivoted to a new strategy. The company now partners with managed service providers (MSPs) who in turn offer Guardz’s security solutions as part of their IT services. This shift has allowed Guardz to expand its reach, now supporting around 200 MSPs that collectively serve about 3,000 SMBs, affecting some 36,000 individual users across their platforms. The funding round, led by Glilot+, along with participation from ClearSky, Hanaco Ventures, iAngels, and GKFF Ventures, is a testament to the increasing recognition of the need for robust security solutions tailored to the SMB market.
The infusion of capital is earmarked for several key areas, primarily the recruitment of engineering talent to further enhance the Guardz product. With a focus on markets in the U.S., U.K., and Australia, Guardz has established a significant presence, and with this new investment, aims to deepen its penetration into these markets and beyond. Although the company has not disclosed its current valuation, it has hinted at a substantial increase, tripling since its last fundraise during its emergence from stealth mode less than a year ago.
Guardz is addressing a pressing and ever-growing need in the cyber security landscape. Historically, SMBs were not the primary targets for cybercriminals, nor were they the main focus for cutting-edge tech solutions due to their fragmented nature and perceived lower return on investment. However, with advancements in technology, particularly in AI, the scale and efficiency of cyber attacks have evolved, making SMBs more vulnerable than ever. Guardz’s platform is designed to equip these smaller businesses with top-tier, AI-driven security measures, comparable to those used by larger enterprises. The service is managed, requiring minimal direct interaction from the clients, and employs advanced automation to detect threats, implement countermeasures, and provide comprehensive reports on security incidents.
As cyber threats continue to become more sophisticated, Guardz is committed to staying ahead of the curve, constantly updating and refining its strategies and tools to combat the latest methods used by hackers. This proactive approach is essential in a landscape where new threats emerge daily. With a significant number of MSPs globally serving the SMB market, the potential for Guardz’s growth and impact is substantial. The company’s journey is a beacon of innovation and commitment in the fight to secure the digital infrastructure of small and medium businesses around the world.