According to cybersecurity entrepreneur Nikita Rozenberg, small and medium-sized businesses (SMBs) are more severely affected. The primary distinction is that big businesses can usually get by with that. Small enterprises can be killed by the majority of these dangers.
As a result, Rozenberg founded Blackwall, an Estonian firm called BotGuard that targets SMBs and has features in common with CloudFlare, Imperva, and others. Both malicious and beneficial bots currently account for a sizable amount of internet traffic, but AI is increasing the latter.
Its product roadmap was also impacted by this approach; it recently introduced a product that stops bots from consuming e-commerce websites’ ad budget.
Dawn Capital, a B2B-focused venture capital firm supporting Blackwall’s €45 million Series B round (about $49.2 million), was impressed by the startup’s rapidity of application launches and its intentions to continue doing so.
Beyond its main product, GateKeeper, a reverse proxy that inspects, analyzes, and filters harmful requests in real time using artificial intelligence, the money will support the development of other products. These dangers include, for example, intruders as well as bots.
Blackwall changed its name to reflect its broader reach for the same reason. Denis Prochko, a co-founder of Rozenberg, came up with the new name as a reference to the video game Cyberpunk 2077, in which the Net is shielded from malicious AIs by a sophisticated firewall known as the Blackwall.
Despite the popularity of video games, Blackwall is a lower-profile company that must make its offering user-friendly and automated in order to appeal to SMBs. As a result, it is frequently hidden from end users. This is also due to Blackwall’s decision to use what Rozenberg refers to as a “channel model” rather than selling directly to SMBs.
This tactic entails collaborating with middlemen who want to increase their profits, such as e-commerce platforms, managed service providers, and hosting service providers. Providing Blackwall to their clients might help them stand out from the competition and save expenses related to harmful traffic.
This is also the reason Blackwall is targeting midmarket companies that require outside assistance to deal with this problem because they are unable to invest millions in internal product development like their biggest rivals, like GoDaddy. On the other hand, this sales approach was especially successful for the startup.
With the support of partnerships with over 100 of these players, Blackwall has rapidly expanded since its 2019 launch: It says that its services are currently available on over 2.3 million websites and applications, and it employs 65 people.
It will now be able to expand its workforce and intensify its efforts to enter the US and APAC markets with the aid of the new finance. To accomplish so, it will rely on the backing of Dawn Capital and venture capital firm MMC Ventures, which took part in this round after spearheading the startup’s €12 million Series A just a year prior (about $13.1 million in today’s currency).
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.