Key Takeaways
• Cynomi has secured $37 million in Series B funding to expand its AI-powered vCISO platform.
• The platform automates cybersecurity consulting for service providers through assessments, remediation guidance, and reporting.
• The company’s annual recurring revenue tripled over the past year, continuing a pattern of rapid growth.
• Funds will support U.S. and European expansion, along with the development of new AI agent-based features.
Cybersecurity startup Cynomi Ltd. has raised $37 million in Series B funding to scale its virtual CISO (vCISO) platform, which helps managed service providers (MSPs) and managed security service providers (MSSPs) deliver automated cybersecurity consulting.
The funding round was led by Insight Partners and Entrée Capital, with participation from returning backers Flint Capital, S16VC, and Canaan, which previously led Cynomi’s $20 million Series A in 2024.
AI-Powered vCISO: A Scalable Security Model
Cynomi’s platform offers a software-driven alternative to hiring a full-time Chief Information Security Officer (CISO). Designed for MSPs and MSSPs, it enables these providers to assess client networks, identify vulnerabilities, and generate prioritized mitigation plans—all using AI.
• Automates cybersecurity assessments via questionnaires and public-facing asset scans
• Generates prioritized, categorized recommendations with natural language explanations
• Offers built-in reporting tools for client visibility and insurance compliance
The platform serves as a scalable vCISO service layer, especially valuable for businesses that cannot afford in-house cybersecurity leadership but still need enterprise-level risk management.
Customer Adoption and Market Validation
Since its last funding round, Cynomi has attracted more than 100 MSPs and MSSPs as users of the platform. These organizations use Cynomi to streamline the delivery of cybersecurity audits, threat detection, and compliance documentation.
“The company says its latest funding round follows 12 months in which its annual recurring revenue tripled. The year before that, the company’s sales more than quadrupled.”
This acceleration in recurring revenue highlights not only the platform’s operational value but also a growing industry demand for automated cybersecurity tools in a market increasingly reliant on outsourcing.
Platform Capabilities: From Assessment to Reporting
Cynomi’s system works by collecting data through both internal and external means:
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Internal surveys and compliance questionnaires help clients self-assess
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Website and infrastructure scans detect exposed vulnerabilities
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AI-generated recommendations guide remediation and are ranked by urgency
• Fix suggestions address specific areas like access control and phishing defenses
• Urgency rankings prioritize remediation tasks (e.g., production vs. development environments)
• Reports can be used for cyber insurance negotiations and client updates
The inclusion of natural language explanations for each security recommendation simplifies communication for non-technical stakeholders and reduces the administrative burden for MSPs.
Strategic Roadmap and Expansion
Following the funding, Cynomi plans to expand its sales team in the U.S. and build a stronger presence in Europe, tapping into markets where small and midsize businesses increasingly rely on third-party cybersecurity providers.
The company also announced plans to launch new features powered by AI agents, which could further automate tasks like threat intelligence correlation, compliance checks, and response planning.
Industry Implications: Addressing the Security Skills Gap
With CISOs in short supply globally, Cynomi’s approach reflects a broader industry trend: outsourcing security leadership functions and making them more accessible through technology.
This not only helps MSPs deliver more competitive services but also enables businesses of all sizes to implement structured, continuous cybersecurity strategies without large upfront investments.
Cynomi’s solution contributes to a democratization of high-level cybersecurity—bringing automated, insight-driven tools into environments that would otherwise lack in-house expertise.
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