Cynomi, an Israeli cybersecurity startup, has raised $37 million in a series B funding round.

The investment was co-led by Insight Partners and Entrée Capital, with participation from existing investors Canaan, Flint Capital, and S16VC.

Founded in 2021, Cynomi provides an AI-powered virtual Chief Information Security Officer (vCISO) platform for Managed Service Providers (MSPs), Managed Security Service Providers (MSSPs), consultancies, and telecom firms.

Co-founded by CEO David Primor and COO Roy Azoulay, Cynomi plans to use the new funding to enhance product development and expand operations in the US and Europe.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Israel’s military intelligence unit continues fueling cybersecurity innovation

Cynomi follows a well-established pattern of successful Israeli cybersecurity startups founded by veterans of Unit 8200, Israel’s elite intelligence corps.

Unit 8200, the largest unit in the Israeli Defense Forces, has become an entrepreneurial incubator, responsible for producing a high percentage of Israel’s tech executives and startup founders, including those behind major firms like Check Point and Waze 1.

The combination of responsibility and technical creativity experienced by soldiers in Unit 8200 fosters a problem-solving culture that translates directly to entrepreneurial success, as seen with Cynomi’s founder David Primor 1.

This military-to-market pipeline has been crucial to Israel attracting 20% of global private investment in cybersecurity, up from just 5-10% in 2014 2.

The Israeli cybersecurity ecosystem has demonstrated significant growth, with notable exits like Sygnia’s $250 million acquisition by Temasek illustrating the global value placed on Israeli security expertise 3.

2️⃣ AI-powered solutions addressing the critical cybersecurity talent shortage

Cynomi’s AI-powered vCISO platform directly addresses one of the industry’s most pressing challenges: a global shortage of 3.4 million cybersecurity professionals that threatens organizational security worldwide 4.

This talent gap has created particular pressure on MSPs, who collectively manage approximately 11,000 security alerts daily while facing a 30% annual increase in cyberattacks 5.

Organizations report significant operational risks from this shortage, with 66% facing skills gaps and many experiencing increased vulnerability to cyber incidents due to inadequate staffing 6.

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