The story surrounding the Cynerio IoT 30m Series B funding round is in the news because it is expected to help the organization expand its domestic and global presence. This level of Series B funding is rare, but an increasing number of cybersecurity firms are attracting investor attention as threats become more significant.
Startups seeking funding can look to the Cynerio model because it provides insight into what investors are interested in seeing when backing a project. This guide will take a closer look at Cynerio IoT Series B funding and examine how startups can replicate this funding strategy as they look to finance their growth.
What Is Cynerio?
Cynerio is a healthcare IoT security platform that offers solutions to benefit every organization in the industry. This cybersecurity platform provides hospitals and other healthcare entities with foresight, control, and adaptability, assisting as they keep up with the ever-evolving threats.
The tools Cynerio provides healthcare organizations ensure they can detect potential threats to their IT systems and mitigate them without service disruptions. Investors saw great opportunity in this platform because it provides a clear benefit to the industry it serves and the people who rely on it.
How Cynerio Will Use Its Funding
Cynerio is in the news because it raised $30 million in Series B funding. This amount is significant for a startup and will assist as the company grows and moves toward a possible IPO in the future. The firm will use these funds in the following ways:
-Expand Market Reach
Cynerio already has a presence in North America, including a Manhattan-based office that acts at the company’s headquarters. The firm plans to expand internationally, and its successful Series B funding round should serve as a catalyst to spur that growth. The company should also continue growing its North American operations while exploring Europe, Israel, and other markets.
-Develop New Platforms
Large portions of Cynerio’s funding will accelerate the company’s technological development. The goal is to improve the firm’s security platform as threats become more sophisticated and to create strategic partnerships with other service providers in the cybersecurity space. The result is a better, more responsive product for healthcare firms.
-Enhance Existing Service
Cynerio has a commitment to its existing customers, and its successful funding round should assist as the company provides improved customer service to these healthcare providers. Offering additional or more robust services will boost the platform’s reputation, potentially driving more domestic growth in the healthcare industry.
Cynerio isn’t resting just because the company is experiencing some success. The startup continues to push forward and improve, which is one reason investors find this cybersecurity firm so intriguing.
5 Tips for Replicating the Cynerio Funding Strategy
Many elements go into securing funding like Cynerio has. Startups looking to find investors in any funding round can look to other successful companies and how they attract investment. Some tips for replicating the Cynerio funding strategy include:
1. Demonstrating Growth
Investors want to see evidence of growth or, at the very least, the potential for growth before handing any money over to a startup. Cynerio had a 300% year-over-year revenue increase between 2019 and 2020, proving to investors that they were making money. The fact that Cynerio has plans for further future growth also makes the company attractive to investors.
2. Seeking Industry-Savvy Investors
Most of Cynerio’s investors have involvement in the healthcare industry, so they understand what the company is doing and how its platform will benefit the industry. The leading investor in the Series B round was ALIVE Israel HealthTech Fund, which is headed by medical professionals, MedTech entrepreneurs, and former health system officials. These investors understand pain points in the industry and can see how Cynerio’s vision will provide a valid service for healthcare firms as it expands.
3. Identifying Pain Points
Cynerio has done an excellent job of identifying where healthcare firms need assistance relating to cybersecurity. These areas include threat detection and preemptive response capabilities that allow hospitals’ IT teams to stop attacks before they can cause a shutdown that puts lives in danger. Identifying the pain points unique to your industry is essential because it puts your product in line with what industry professionals are actively seeking.
4. Offer Viable Solutions
The solutions Cynerio provides to healthcare firms in response to their pain points are helping the company grow. Cynerio knows what hospitals and other healthcare professionals require and has a platform that provides the necessary service. Other startups looking to replicate this funding strategy will need to put significant resources into product development since the cybersecurity platform’s performance is what ultimately attracts investors to a venture.
5. Have a Vision
Cynerio has a vision for the future, so investors can see the heights the company wants to reach. The firm is looking to expand overseas while offering a full-suite cybersecurity platform that protects patient safety, offers operational continuity, and keeps data safe. Any startup looking to grow needs to know where they’re going and how they’ll get there to attract investor attention.
There aren’t any guarantees for startups as they seek the funding necessary for growth, but there are some steps these firms can take to give themselves the best chance of success. Knowing where to find investors is also crucial because their funding makes growth possible in the immediate future.
Funding for Startups
Life isn’t always easy for startups, especially as you seek the funding you need to follow your vision and reach your goals. Professional assistance is available for firms looking for reliable investors, though, which can streamline the process and increase your chances of success.
Option3 is a cybersecurity investment consultant that connects early-stage startups with investors that understand the industry and its pain points. We can connect your startup with cyber-focused investors looking for opportunities in your industry, helping you secure the funding necessary to reach the next level. Contact Option3 for more information on our cybersecurity investment services.