Coro lands $60M to ~$500M valuation for comprehensive SaaS-based cyber protection platform for SMBs – TechCrunch

Companies typically spend a lot of money and talent protecting themselves against security breaches. This leaves ample opportunity for cybersecurity specialists to create tools for small organizations that still face the same security challenges – and like some have arguedmay be even more – than their larger counterparts but don’t have the same resources to fight them.

coro – a startup building an all-in-one cybersecurity platform for midsize businesses, with features to monitor and remediate devices, users, emails, networks, data and apps any malicious activity – raised $60 million, funding that it plans to use continue to double down on that particular gap in the market.

It is a Series C and it is led by Balderton Capital out of London, with participation from Jerusalem Venture Partners, a former backer. Alongside this latest round, the company is also disclosing for the first time an additional $20 million raised in the past six months, bringing the total to $80 million over the period.

The company – based in Israel but with a substantial operation in the United States, based in New York and Chicago – has been around for quite some time. It used to be called CoroNet (a legacy still alive in its URL) and even took part in our Startup Battlefield in New York in 2015 – but about three years ago it moved away from protecting consumer gadgets against cyber threats to public WiFi and to its enterprise cybersecurity platform, a move that CEO and co-founder Guy Moskowitz says has led to 300% growth every year since then, with a total of around 4 million users in 4,500 companies 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 approximately $103 million to date from other investors including Sound Ventures, Cisco and MizMaa.

The middle market according to Moskowitz estimates is between 500 and 4,000 employees, and he considers a “sweet spot” (if cyber has such a thing) to create security tools capable of automating regular work. and to render some of the other functions typical of a computer. security system much easier to handle.

“1,000 to one is the typical ratio for cyber professionals,” he said in reference to the number of people hired and how many they “represent” in terms of oversight. This means that “if you’re an organization of less than 1,000 people, there’s often no one there, just IT.”

Add to that how big companies are investing in software to equip their security teams. A company like Goldman Sachs could use more than 40 products, he said. A small business these days may need to purchase between six and 13 different apps to cover security aspects, such as email filtering, network security, device management, application management , etc

“But even if you manage to get the budget for all of this and install it, who would pursue all the events that these apps will generate?” He asked. “So we decided to look into the problem from top to bottom.”

This trick produced Coro as it is today, a platform that acts as a kind of security “super app” that covers all potential attack surfaces that a malicious hacker or virus could touch, Coro having built the entire service stack. itself: no third-party app integration. Priced at $7 per user per month, it claims to be able to automate and support 95% of the security workload that might be generated in a typical business. (Coro says a comparable set of point solutions could cost between $45 and $115 per user per month.)

“What we’ve done is really shift the paradigm,” he said. “It’s fundamentally different from the old way of using point solutions to provide security.” (That’s not the only one: there are dozens of other companies targeting the middle market, albeit often with more ad hoc solutions. Some like AlienVault and BlueVoyant also take a platform approach, albeit with different concepts on how to complete the challenge. .)

In the world of work (or any place that relies on IT, like education), it’s often a frustrating experience for users when those with the IT purse strings decide to go with a larger multifunctional platform rather than an individual point. solutions adapted to the needs of its users. Typically, this leads to a loss of dedicated functionality and customization.

Moskowitz, however, believes that Coro is the exception to this due to the approach he has taken and the whole system being AI-driven.

“We have a huge, really smart AI engine that’s powered by every attack vector, so not only isn’t it as good but much better than any point solution because it doesn’t have any corners dead,” he said, noting that anti-phishing, anti-malware, and data loss prevention really go hand in hand. “When you can see from everywhere, you can react better. Our solution is integrated throughout the chain.

With this, however, the platform comes with some compromises. For example, this means that a customer cannot customize any part of Coro: WYSIWYG.

“But you can’t customize Dropbox either,” Moskowitz countered. “We are essentially the Dropbox of security. You don’t know cyber as well as we and our machines do.

It is an argument that has won over customers and investors.

“Coro is the only company in the cybersecurity industry dedicated to serving the mid-market industry with a solution that is affordable, easy to implement, and truly comprehensive, enabling midsize businesses to protect themselves in the midst of… ‘a rapidly escalating cybersecurity climate,” Rana Yared, general partner at Balderton Capital, said in a statement. “Coro is poised to dominate this huge, extremely 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 be part of their journey to make non-disruptive security a mainstay of growing businesses across all industries.

“We have been firm believers in Coro’s vision since day one and have seen the company grow exponentially with true innovation in AI automation and massive adoption of the Coro platform by businesses in growth in all sectors,” added Yoav Tzruya, a 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.