IntroductionBlackwall, an Estonia-based cybersecurity startup formerly known as BotGuard, has secured a substantial €45 million Series B funding round. The company focuses on protecting small and medium-sized businesses (SMBs) from malicious online traffic using AI-powered solutions. Their flagship product, GateKeeper, acts as a reverse proxy, inspecting and filtering malicious traffic in real-time.Background and ChallengesA significant portion of online traffic originates from bots, with a substantial percentage being malicious. This poses a critical threat to SMBs, which often lack the resources for effective defense. Unlike larger enterprises, SMBs are more vulnerable to cyberattacks, which can have devastating consequences due to their limited resources and cybersecurity expertise. As Blackwall CEO Nikita Rozenberg explains, "The main difference is that large enterprises typically can survive with that. Most of these threats can simply kill small businesses."Funding and Expansion PlansThe €45 million Series B funding round was led by Dawn Capital, with participation from existing investors like MMC Ventures. This brings Blackwall's total funding to approximately $58.8 million. The company plans to use the funding to double its headcount and expand its reach into the U.S. and APAC markets. Beyond GateKeeper, Blackwall intends to develop new products, enhancing its offerings to protect against evolving threats like AI-driven attacks and ad fraud.Key Features and StrategiesGateKeeper is a next-generation bot and attack detection mechanism designed to shield servers from malicious bots and hacker attacks. Blackwall utilizes a channel model, partnering with hosting service providers, managed service providers, and e-commerce platforms to indirectly offer its solutions to SMBs, providing a key differentiation factor and cost savings. Furthermore, Blackwall has launched a product specifically designed to prevent e-commerce websites from losing ad spend to bots.Market Position and CompetitorsBlackwall differentiates itself through its focus on SMBs, automation, ease of use, and channel-based distribution. Unlike competitors such as Cloudflare, Imperva, and DataDome, Blackwall's approach is tailored specifically for the needs of smaller businesses.Investor InsightsNorman Fiore of Dawn Capital notes, "It is rare to see a business targeting SMBs with such a broad offer, of which each component is best of breed." Mina Samaan of MMC Ventures adds, "Blackwall’s approach, tackling malicious and useless traffic at the infrastructure layer, addresses a critical gap in the market, providing much-needed protection to hosting providers and smaller businesses."ConclusionBlackwall's Series B funding represents a significant milestone in its mission to protect SMBs from the ever-increasing threat of malicious online traffic. With its expanding product offerings and strategic partnerships, Blackwall is well-positioned to become a leader in cybersecurity for SMBs.
