Guardz, an Israeli cybersecurity startup, providing all-in-one security and cyber insurance solutions for small and medium businesses (SMBs), has successfully raised $18M in a Series A round of funding.
The Increasing Cybersecurity Threats for SMBs
With the advent of AI technologies, the cybersecurity landscape is shifting. SMBs, which were once considered safe from cyberattacks due to their size and fragmented nature, are now becoming a prime target for cybercriminals.
According to some estimates, SMBs now account for roughly half of all cyber breaches worldwide.
The reason behind this shift is the development of AI-powered cyber attack tools that allow malicious actors to launch large-scale attacks with ease. These AI technologies have made it possible to exploit vulnerabilities within SMBs, causing a spike in cyber threats.
Guardz’s Journey: From Stealth Mode to $18M
Founded less than a year ago, in January 2023, Guardz has swiftly pivoted from its initial business model. Initially, the company aimed to sell its security solutions directly to SMBs. However, it soon realized that Managed Service Providers (MSPs), who sell and manage IT services for SMBs, were the primary route to reach its target audience.
As a result, instead of direct business, Guardz began partnering with MSPs, enabling them to offer their own services “powered” by Guardz.
Funding and Growth
Guardz’s recent fundraising round, led by Glilot+, the early growth fund of Glilot Capital Partners, with participation from ClearSky, Hanaco Ventures, iAngels, and GKFF Ventures, has raised another $18M.
The company’s valuation has tripled since its last fundraising round, indicating a strong investor confidence in its business model and growth potential.
With this funding, Guardz aims to hire more engineering talent to continue developing its product. Currently, the company’s product is primarily sold to customers in the U.S., U.K., and Australia. It has about 200 MSPs on its books, representing some 36,000 seats using Guardz’s products.
Guardz’s AI-Based Security Solution
Guardz’s solution is an AI-based platform that provides robust security comparable to what larger organizations use. It offers its security platform as a managed service, which means the customer doesn’t have to manage it directly.
Guardz’s platform automatically detects malicious activity, provides remediation, and generates activity reports for further analysis by the MSP.
To combat the ever-evolving cyber threats, Guardz constantly expands its toolset. For instance, the company recently developed detection and remediation tools for a new type of cyber attack involving automated forwarding rules in Microsoft 365.
Guardz’s Future Plans
Guardz’s immediate plan is to use the funding to enhance its product and expand its customer base. Given the size of the SMB market and the increasing cybersecurity threats they face, Guardz has a huge potential for growth.
With over 150,000 MSPs globally serving the SMB market, Guardz has the opportunity to secure a significant share of this market.
The Bigger Picture: Cybersecurity for SMBs
Guardz is not alone in recognizing the importance of cybersecurity for SMBs. Other companies, such as CyberSmart in the U.K., CrowdStrike, and Check Point, are also competing in this growing market.
However, Guardz stands out with its all-in-one security and cyber insurance service, its focus on partnering with MSPs, and its AI-based automated threat detection and remediation tools. As SMBs continue to face increasing cyber threats, solutions like Guardz will become even more critical.
