Nikita Rozenberg, a cybersecurity entrepreneur, claims that the impact is more severe for small and medium-sized businesses (SMBs). “The main difference is that large enterprises typically can survive with that. Most of these threats can simply kill small businesses.”
This led Rozenberg to found Blackwall, an Estonian startup that was formerly known as BotGuard and shares similarities with CloudFlare, Imperva, and others, but focuses on SMBs. A significant portion of online traffic now comes from bots, both good and bad—but AI is boosting the latter.
This focus also influenced its product roadmap: It recently launched an ad fraud prevention product that prevents e-commerce websites from having their ad spend consumed by bots.
The pace at which the startup has been launching new applications and plans to keep on doing so is one factor that resonated with Dawn Capital, the B2B-focused VC firm that is backing Blackwall’s €45 million Series B round (approximately $49.2 million).
The funding will help further develop new products beyond its flagship product, GateKeeper, a reverse proxy that inspects traffic, analyzes it — also using AI — and filters malicious requests in real time. These threats include bots, but also intruders, for instance.
That’s also why Blackwall rebranded to reflect its expanded scope. Rozenberg’s co-founder Denis Prochko came up with the new name, a nod to video game Cyberpunk 2077, in which a complex firewall called the Blackwall protects the Net from rogue AIs.
Video game lore aside, the reality of Blackwall is lower profile; to adapt to SMBs, it needs its offering to be both easy to use and automated, which means it is often invisible to end users. That’s also because Blackwall doesn’t sell to SMBs directly, and instead opted for what Rozenberg calls a “channel model.”
This strategy consists in partnering with intermediaries like hosting service providers, managed service providers and e-commerce platforms that are looking to improve their margins. Offering Blackwall to their customers can be a differentiation factor and also a way to lower costs incurred from malicious traffic.
That’s also why Blackwall is going for midmarket players that can’t spend millions on in-house product development like their largest competitors such as GoDaddy, and need external support to handle this issue. Conversely, the startup found this sales strategy particularly fruitful.
Partnering with more than 100 of these players helped Blackwall scale quickly since its launch in 2019: With a team of 65, it claims that its services are now deployed across more than 2.3 million websites and applications.
The new funding will now help it double its headcount, and double down on its expansion into the U.S. and APAC markets. It will count on Dawn Capital’s support to do so, as well as from VC firm MMC Ventures, which participated in this round after leading the startup’s €12 million Series A just one year ago (approximately $13.1 million at today’s exchange rate.)
Estonia-based Blackwall Secures €45 Million Series B Funding to Safeguard SMBs from Malicious Online Traffic
In a significant boost to cybersecurity innovation, Estonia-based Blackwall has successfully raised €45 million in its Series B funding round. The company, renowned for its cutting-edge solutions to protect small and medium-sized businesses (SMBs) from malicious online traffic, is poised to expand its reach and enhance its technology to combat the growing threat of cyberattacks targeting SMBs.
The Rising Threat to SMBs
Small and medium-sized businesses are increasingly becoming prime targets for cybercriminals. Unlike large enterprises with dedicated cybersecurity teams and robust defense mechanisms, SMBs often lack the resources and expertise to fend off sophisticated online threats. According to recent studies, nearly 43% of cyberattacks are directed at SMBs, with many of these businesses unable to recover from the financial and reputational damage caused by such breaches.
Blackwall’s mission is to level the playing field by providing SMBs with enterprise-grade cybersecurity solutions that are both affordable and easy to implement. The company’s unique approach to filtering and blocking malicious traffic has already garnered widespread acclaim, making it a trusted partner for businesses across Europe and beyond.
How Blackwall is Making a Difference
Blackwall’s proprietary technology leverages advanced algorithms and machine learning to detect and neutralize malicious online traffic in real time. By analyzing patterns and behaviors, the system can identify potential threats before they infiltrate a business’s network. This proactive approach not only prevents data breaches but also ensures uninterrupted operations for SMBs, allowing them to focus on growth and innovation.
One of the standout features of Blackwall’s solution is its simplicity. Unlike traditional cybersecurity tools that require extensive configuration and maintenance, Blackwall’s platform is designed to be user-friendly, enabling even non-technical users to secure their online presence with just a few clicks. This ease of use has been a game-changer for SMBs that previously struggled to navigate the complexities of cybersecurity.
The Series B Funding Round
The €45 million Series B funding round was led by a consortium of prominent venture capital firms, including NordicNinja and Karma Ventures, with participation from existing investors. The influx of capital will be used to accelerate Blackwall’s product development, expand its global footprint, and strengthen its team of cybersecurity experts.
In a statement, Blackwall’s CEO, Markus Kärp, expressed his gratitude to the investors and emphasized the company’s commitment to its mission. “This funding is a testament to the trust our investors have in our vision and technology. With their support, we will continue to innovate and empower SMBs to thrive in a digital world without fear of cyber threats.”
A Vision for the Future
Blackwall’s success story is a shining example of how technology can be harnessed to address pressing global challenges. By focusing on the underserved SMB market, the company is not only protecting businesses but also contributing to the overall resilience of the digital economy.
Looking ahead, Blackwall plans to integrate artificial intelligence and blockchain technology into its platform, further enhancing its ability to detect and mitigate emerging threats. The company is also exploring partnerships with governments and industry associations to raise awareness about the importance of cybersecurity for SMBs.
Why This Matters
The significance of Blackwall’s achievement extends beyond the realm of cybersecurity. It underscores the critical role that startups play in driving innovation and solving real-world problems. As cyber threats continue to evolve, the need for agile and forward-thinking solutions like Blackwall’s will only grow.
For SMBs, this funding round represents a beacon of hope. With Blackwall’s technology, they can now operate with confidence, knowing that their digital assets are protected from malicious actors. This newfound security will enable them to embrace digital transformation and compete on a level playing field with larger enterprises.
Conclusion
Blackwall’s €45 million Series B funding round marks a pivotal moment in the fight against cybercrime. By empowering SMBs with robust and accessible cybersecurity solutions, the company is not only safeguarding businesses but also fostering a more secure and inclusive digital ecosystem. As Blackwall continues to innovate and expand, its impact on the global cybersecurity landscape is sure to be profound.
For SMBs looking to fortify their defenses against online threats, Blackwall’s rise is a reminder that help is at hand. In a world where cyberattacks are becoming increasingly sophisticated, having a reliable partner like Blackwall can make all the difference.