- $40m total funding raised in Series-C round.
- DT adds another undisclosed sum to startup’s funding pot, with latter eyeing growth opportunities.
Deutsche Telekom made a further investment in cybersecurity specialist Cynet, as part of a Series-C funding round that raised $40m (£29m/€34m) for the startup.
The round was led by Israel-based investment vehicle Greenfield Partners. Existing backers BlueRed Partners and Norwest Venture Partners also participated. The investment split was not disclosed.
Cynet said the financing will help it meet “vigorous demand” for its flagship Autonomous Breach Protection platform, and support an expansion of its presence and sales capabilities in Europe and North America.
Autonomous Breach Protection is marketed as a solution for “companies of all sizes”, but is primarily targeted at small- and medium-size enterprises (SME). Via a research paper, titled 2021 CISO Survey of Small Cyber Security Teams, the startup recently sought to highlight the challenges faced by small security teams who are “inundated by many of the same threats” facing larger organisations, but lack the resources and specialist training to respond effectively. Cynet frames Autonomous Breach Protection as a relatively low-cost, end-to-end solution which — regardless of a “security team’s size and skill” — can alleviate these pressures. Once purchased, Cynet’s CyOps team is also on hand to offer “24/7” customer support.
The vendor has now raised a total of $78m. Deutsche Telekom first bought into Cynet via its strategic investment fund Telekom Innovation Pool (TIP) in June 2020 (Deutsche Telekomwatch, #95).
As with most Telekom Innovation Pool investments, the startup’s relationship with Deutsche Telekom goes beyond financing. Following on from the initial funding deal, its technology is being leveraged by the operator’s Telekom Security unit — spun out from T-Systems in mid-2020 (Deutsche Telekomwatch, #95) — to target SMEs.
Cynet lists Deutsche Telekom as one of two “strategic investors”. The other is cyber-tech player Merlin International.
A full list of TIP investments to February 2021 can be found here.