Companies often spend a significant amount of money and talent protecting themselves from security breaches. That leaves a huge opportunity for cybersecurity specialists to build tools aimed at smaller organizations that are still facing the same security issues, and as some have arguedmaybe even more — like their larger counterparts, but they don’t have the same resources to combat them.
chorus — a startup building an all-in-one cybersecurity platform aimed at mid-market businesses, with features to monitor devices, users, email, networks, data, and applications and remediate any malicious activity — has raised $60 million, funding that plans to use to continue doubling down on this particular gap in the market.
This is a Series C and is being led by Balderton Capital of London, with the participation of Jerusalem Venture Partners, a previous backer. Along with this latest round, the company also reveals for the first time an additional $20 million raised in the last six months, bringing the total to $80 million in the period.
The company, based in Israel but with a substantial operation in the US, based in New York and Chicago, has been around for a while. It used to be called CoroNet (a legacy still alive in its URL) and even participated in our Startup Battlefield in New York in 2015, but about three years ago it moved away from protecting consumer devices from cyber threats on public WiFi and became moved closer to its cybersecurity platform for businesses, a move CEO and co-founder Guy Moskowitz said has led to 300% growth every year since, with a total of some 4 million users across 4,500 businesses now covered on its platform. .
The company does not disclose its valuation, but we understand from a reliable source that it is now around $500 million. It has raised around $120 million to date with other investors including Sound Ventures and MizMaa.
By Moskowitz’s estimate, the mid-market has between 500 and 4,000 employees, and he sees that as a “sweet spot” (if cyberspace has such a thing) to build security tools that can automate regular work and do some of the other typical IT functions. security system much easier to manage.
“1,000 to one is the typical ratio for cyber professionals,” he said in reference to how many people are hired and how many “account” in terms of supervision. That means “if you’re an organization of fewer than 1,000, there’s often no one there, just IT.”
Add to this how the largest companies invest in software to equip their security teams. A company like Goldman Sachs could use more than 40 products, she said. These days, a smaller business might need to buy six to 13 different apps to cover security aspects like email filtering, network security, device management, app management, etc.
“But even if you managed to get the budget for all of that and get it installed, who would go after all the events that these apps will spawn?” she asked. “So we decided to look at the problem from scratch.”
That twist produced Coro as it is today, a platform that acts as a kind of security “super app” that provides coverage across every potential attack surface a hacker or malicious virus could touch, with Coro having built the entire stack. of services. itself: no third-party app integrations. Priced at $7 per user per month, it claims to be able to automate and take care of 95% of the security workload that might be generated in a typical business. (Coro’s claim is that a comparable package of point solutions could cost between $45 and $115 per user per month.)
“What we have done is really change the paradigm,” he said. “This is fundamentally different from the old way of using point solutions to address security.” (He’s not alone: There are dozens of other companies targeting the mid-market, albeit often with more point-based solutions. Some like AlienVault and BlueVoyant are also taking a platform approach, albeit with different concepts of how to approach the challenge. .)
In the world of work (or anywhere that relies on IT, like education), it’s often a frustrating experience for users when those pulling the strings in IT decide they’ll opt for a larger multifunctional platform instead of a point individual. solutions to meet the needs of its users. That usually results in a loss of dedicated functionality and customization capabilities.
However, Moskowitz believes that Coro is the exception to that state of affairs due to the approach it has taken and that the entire system is supported by AI.
“We have a huge really smart AI engine that feeds into every attack vector, so it’s not only not as good but much better than any point solution because you don’t have any blind spots,” he said, noting that antiphishing, antimalware and data loss prevention really do go hand in hand. “When we can see from everywhere, we can react better. Our solution is integrated throughout the chain”.
However, with that, the platform comes with some compromises. For example, it means that a client cannot customize any part of Coro:WYSIWYG.
“But you can’t customize Dropbox either,” Moskowitz replied. “We are basically the Dropbox of security. You don’t know cybernetics as well as we and our machines.”
It’s a launch that has courted customers and investors.
“Coro is the only company in the cybersecurity industry dedicated to serving the mid-market sector with a solution that is both affordable, easy to implement, and truly comprehensive, enabling midsize businesses to protect themselves at amid a rapidly increasing cybersecurity climate,” Rana Yared, general partner at Balderton Capital, said in a statement. “Coro is poised to dominate this huge and highly underserved market segment, and we believe its growth will continue at an exponential rate. We are excited to partner with the innovative team at Coro and participate in their journey to make seamless security a mainstay of growing businesses across industries.”
“We have been strong believers in the Coro vision from day one and have seen the company grow exponentially with real innovation in AI automation and widespread adoption of the Coro platform by growing businesses across industries” added Yoav Tzruya, general partner. at JVP. “Coro is well positioned to become the go-to cybersecurity solution for the mid-market sector, and we are delighted to welcome Balderton Capital to the team as we work together to support Coro’s explosive growth.”
Updated to change the total funding to $120M and remove Cisco as an investor.