Guardz, an innovative Israeli startup firm that offers a comprehensive solution integrating cyberinsurance and security for small to medium enterprises (SMBs), has successfully topped up its coffers with an additional $18 million from a Series A funding round.
The company, which stepped out of the shadows less than a year ago, at the close of January 2023, has rapidly adjusted its business perspective. Originally, Guardz intended to sell directly to SMBs. However, a pivot became evident when it was clear that managed service providers (MSPs), who take care of IT services for SMBs, were the ideal conduit to getting their product used by SMBs. At this point, MSPs are now creating their own packages, endorsed and fortified by Guardz.
Dor Eisner, CEO of Guardz, highlighted in an interview the journey of the company. He emphasized: 'It’s a blended solution, powered by Guardz but with the logo of the MSP out in front.'
The intention behind this funding round is to hire additional engineering talent to keep enhancing the Guardz product. The firm primarily caters to clients based in the U.S., U.K., and Australia. Currently, about 200 MSPs are using Guardz, further catering to around 3,000 SMBs. This represents approximately 36,000 users seated within Guardz's security offerings. While security remains the core source of revenue, cyber insurance stands as an optional addition.
The early growth fund of Glilot Capital Partners, Glilot+, is the chief financial backer in this round. Other participating investors include ClearSky, Hanaco Ventures, iAngels, and GKFF Ventures.
While the company's valuation remains undisclosed, Eisner indicated that the figure has grown threefold since the last fundraising effort, a $10 million seed round, coinciding with Guardz announcement to the public.
One of Guardz's core objectives is to develop a robust security platform for its clients that can compete with larger organizations' offerings. The platform runs as a managed service, requiring little customer input in direct management. Yet, it comprises a host of AI-based automation features: Guardz' tools automatically detect any illicit action, offering solutions against such activity and producing activity reports for further investigation by the MSP. Besides, the MPS can further utilize Guardz to craft security breach scenarios – tailored to the specific operations of the SMB in question – to help train their client's workforce.
Harnessing AI-driven technologies to provide no-code solutions, platforms like AppMaster and Guardz markedly enhance the capabilities and safety of businesses. At AppMaster, the emphasis is on using AI to create highly customizable, scalable, web, mobile, and backend applications without the need for traditional coding. Challenges faced by the industry are continually evolving, and consolidating AI into security and software development solutions is salient for the future of resilient, sustainable businesses.
