Guardz collects $56M to bring enterprise-grade cybersecurity to smaller businesses

Cybersecurity services firm Guardz Cyber Ltd. said it has closed on a $56 million Series B round of funding today as it scrambles to help small and medium-sized businesses build resilience to a growing range of threats.

Today’s round was led by ClearSky and saw participation from Phoenix Financial and existing investors Glilot Capital Partners, SentinelOne, Hanaco Ventures, iAngels, GKFF Ventures and Lumir, bringing the company’s total amount raised to $84 million.

Guardz stepped into the limelight just over two years ago, at the end of January 2023, and has since pivoted its business model, moving away from selling its platform and services to SMBs. These days it works with the managed services providers that cater to SMBs, helping them build their own security offerings powered by its comprehensive suite of cyber defense tools.

The Guardz unified cybersecurity platform is primarily focused on a human and artificial intelligence-based managed detection and response service that’s purpose-built for MSPs that need to deliver robust security at scale for their customers. It streamlines active protection across cloud, data, identities and endpoints within a single platform, helping MSPs to rapidly detect and respond to threats with minimal manual effort. It combines AI-powered threat detection with human expert-led hunting, continuously monitoring user behavior and activity in Google Workspace, Microsoft 365 and other enterprise systems, looking to flag any suspicious activity that might indicate an account takeover attempt. Should any warnings appear, it can instantly suspend accounts to prevent any damage being done.

The startup is targeting MSPs because it realized they offer the best way for it to get its product in front of SMBs, which urgently need its help. Previously, SMBs were mostly overlooked by hackers because they are too fragmented and the return on investment is not as lucrative as larger enterprises. But these days, advances in AI mean it’s possible for malicious actors to automate campaigns against SMBs, making the payoff much more worthwhile. It’s alarming for SMBs, because they often lack the expertise and the tools to defend themselves against sophisticated cyber threats.

In response, Guardz has created a security platform aimed specifically at SMBs, and claims that it’s just as robust as the tools used by much larger organizations. It’s offered as a managed service, with much of the grunt work being automated by AI. For instance, Guardz can automatically detect threats and vulnerabilities or suspicious activity, provide remediation and create reports to inform the MSP. In addition, MSPs can use Guardz’s tools to simulate attacks that are customized for each SMB.

Guardz co-founder and Chief Executive Dor Eisner said his company’s mission is to bring enterprise-level cybersecurity to SMBs. “MSPs are the first line of defense for these organizations, which are the engine of the global economy,” he said.

This kind of comprehensive, all-in-one security platform is just what MSPs need, for Guardz cites its own surveys that show how 77% of them struggle to manage multiple, fragmented cybersecurity tools and systems. It has impressive traction too, having onboarded hundreds of MSPs as partners, helping to secure thousands of SMBs globally.

The funding will be used by Guardz to scale up its go-to-market operations and advance its AI-powered automation and risk prevention systems, while building new cyber compliance and insurance capabilities, the startup said.

ClearSky Managing Partner Alex Weiss said he believes Guardz is serving a critical, yet underserved market. “Its AI-native approach, seamless integrations, and relentless focus on the MSP ecosystem has led to rapid growth and uniquely positions them to continue to lead this space,” he added.

Photo: Guardz