Software company Cybersmart has raised £5.5m in a series A funding round, led by VC firm IQ Capital and “respected cyber security and tech entrepreneur investors”.
The funds will be used to support the growth of the company, which works to provide cybersecurity protection to small and medium businesses (SMBs).
SMBs have been hit particularly hard by the increased cybersecurity risk that has been created by the Covid-19 pandemic. In 2017, the year that CyberSmart was founded, 74% of SMBs experienced a breach that year, and according to cybersecurity company BullGuard, 43% of SMBs does not currently have a cyberdefence plan.
According to CyberSmart, the company has experienced a significant increase in demand from SMBs, with revenue increasing by 300% over the last 12 months, with lockdown seeing an increase in the uptake of Cybersmart’s cloud-based technology.
Jamie Akhtar, CEO of CyberSmart said:
“We are delighted to have closed our Series A funding round with £5.5 million to fund our next stage of growth. Our investors have seen that we have built a great technology and also a great team. The SMB market has not been easy to protect until now, and business owners have so many issues to deal with they often wait until it is too late, losing all their customer data or even cash in a cyber-attack. We take all the effort out from a business becoming secure, so it’s not as painful, time-consuming, or as expensive as one might think. People can have effective, comprehensive security and risk-reduction from a team that is there to support them through the challenges of transforming into a digital business.”
Cybersmart was one of the first participants in the National Cyber Security Centre Cyber Accelerator programme, and was founded with the aim of making cybersecurity accessible to businesses of all sizes.
Akhtar continued: “The technology is now there that enables us to automate protecting SMBs by implementing a cloud-based platform that is both simple and cost effective to deploy, backed by a Cyber Essentials Certification. Businesses have gone through two stages, the first phase was rapid, digital transformation that was all about connectivity, communication, basically getting your team and your company back online remotely. Phase two is now. We have spent all these years building our secure, corporate infrastructure or drilling into people these secure working practices, but that has all gone out the window because everyone is now working remotely.
“So, I think now people are thinking about how they secure their teams and their employees remotely. So that’s the big wave which we are seeing now that has been driving demand from all types of companies because our technology is automated, certified, comprehensive and can be deployed, managed and monitored remotely. CyberSmart are working with many different types of channel partners as there is a massive opportunity to reach the SMBs. For partners there are many benefits: an income stream that also prevents churn, it makes customers more sticky; but more importantly, it makes customers more secure, so that helps with cyber hygiene across the whole UK business supply chain.”