London and Tel Aviv-based Cynomi, which offers a “virtual CISO” for SMBs, raised a $37M Series B, sources say at a $140M+ post-money valuation
Small and medium businesses are the newest targets for cybersecurity attacks, with 1 in 3 breached last year.
Context & Ripple Effects
Cynomi’s reported Series B follows its $20M Series A for an AI-powered virtual CISO service a year earlier, extending a funding arc around outsourced security leadership for managed service providers and SMBs.
The story matters because the company is targeting a segment described as increasingly breached, where a virtual CISO is positioned as an alternative to building senior security capacity internally.
First-order effects
- The reported $37M financing gives Cynomi additional capital to develop and sell its virtual CISO offering to SMB-focused security channels.
- SMBs and managed service providers gain a better-funded supplier focused on security-governance support rather than a standalone defensive tool.
Second-order effects
- Providers serving SMB security may face greater pressure to add or strengthen virtual-CISO and governance services alongside their existing products.
- The funding reinforces the commercial importance of channel-delivered security services for customers that may not staff a full in-house CISO function.
Third-order effects
- If breach exposure continues to pull SMBs toward outsourced security leadership, the market could shift from point tools toward bundled advisory, governance, and operational security services.
- This is a test of whether AI-assisted service delivery can make higher-level security oversight economically viable for smaller organizations without internal executive-scale security teams.
The trend: Cybersecurity vendors are increasingly packaging senior-level security guidance into software-enabled services for the underserved SMB market.