Israeli cybersecurity startup Guardz has raised US$56 million in a series B funding round led by US-based firm ClearSky.

New investor Phoenix Financial joined existing investors Glilot Capital Partners, SentinelOne, and Hanaco Ventures in this round.

This funding increases Guardz’s total capital raised to US$84 million since its establishment in 2022.

The company provides cybersecurity solutions for small and medium-sized businesses (SMBs) through its AI-driven platform, which is designed for Managed Service Providers (MSPs).

Guardz was co-founded by Dor Eisner, who previously worked at IntSights, and Alon Lavi, a former employee at Argus Cyber Security.

The recent funding will be used to enhance the platform’s capabilities and expand its market presence.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ The economics of the SMB cybersecurity crisis create devastating outcomes

The $56 million investment in Guardz reflects the urgent reality faced by small businesses: cyberattacks now cost small businesses an average of $200,000, with 60% going out of business within six months of being attacked 1.

Despite 61% of SMBs being targeted by cyberattacks in 2021, a shocking 51% have no cybersecurity measures in place whatsoever, creating a massive protection gap in the market 2.

This vulnerability is compounded by resource constraints. While 43% of online attacks target small businesses, only 14% are prepared to defend against these threats, explaining why investors see tremendous potential in platforms specifically designed for this underserved segment 1.

The financial impact is especially devastating for smaller organizations, with costs ranging from $826 to $653,587 including business interruption and recovery expenses, making cybersecurity an existential issue rather than just an IT concern 2.

Small businesses face a particular challenge as they typically lack dedicated security teams yet often possess valuable data, with 87% holding customer information that could be compromised in an attack 2.

2️⃣ Consolidated security platforms address the fragmentation problem for resource-constrained businesses

Guardz’s approach of unifying multiple security functions directly addresses a documented market pain point, as 77% of MSPs struggle with fragmented cybersecurity tools that create inefficient workflows and delayed threat responses.