Defendify raises $2M seed round to continue to scale

Defendify, a Portland-based cybersecurity software startup, has raised a $2 million seed round.

Co-founded in 2017 by Rob Simopoulos and Andrew Rinaldi, the company has developed an software-as-a-service (SaaS) platform that helps small- and medium-sized businesses manage their cybersecurity needs. Maine Startups Insider selected the company for its inaugural list of Maine Startups to Watch in 2019.

In the last 18 months, Defendify has raised a total of $3.6 million (it raised an initial round of $1.6 million last summer), added thousands of users to its platform, and doubled its employee count, according to a news release. It also recently moved into a new, larger office in Portland’s Bayside neighborhood. The $2 million round will be used to expand its core product, invest in sales and marketing, and make strategic hires, according to the company.

“This new round of capital will enable us to scale Defendify even faster to help the millions of [small and medium-sized businesses] who need to improve their cybersecurity posture and want an easy and flexible solution that will grow with their business,” Simopoulos said in the release.

The pool of investors include several out-of-state firms, including New Jersey-based 3dot6 Ventures, which is an existing investor that led this new round, but all are based in the Northeast. Other investors in this round include York IE, a VC firm in New Hampshire; FreshTracks Capital, based in Vermont; Wasabi Ventures, also based in New Hampshire; Maine Technology Institute; and Maine Venture Fund.

“The Defendify team has demonstrated strong leadership, capital efficiency, and impressive progress to-date,” Norman Menz, managing director at 3dot6 Ventures, said in a statement. “3dot6 is thrilled to continue to have the company in our portfolio as we work together to transform cybersecurity for small businesses.”

There are 28.8 million small and medium sized businesses in the United States (defined as having less than 500 employees), according to the Small Business Administration. While large companies have the resources to handle cybersecurity and the vendors that offer enterprise solutions, small business owners often do not have the resources or time to properly handle cybersecurity concerns. The risk of a cyber breach can be costly. On average, cyberattacks cost companies $200,000, according to Hiscox Cyber Readiness Report 2019. These nearly 30 million SMBs are who Defendify is targeting with its software platform.

“Considering more than half of small businesses suffered a data breach in the last year, cybersecurity is no longer a nice-to-have, but a must-have for the millions of small businesses in the U.S.,” said Kyle York, CEO & Managing Partner at York IE. “Defendify provides a holistic solution at a reasonable price point for SMBs—making cybersecurity accessible to all small businesses and not just large-scale enterprises.”