Bots generate about 50% of all global web traffic, and two-thirds of these bots are malicious. While enterprises can afford sophisticated cybersecurity solutions, SMBs remain vulnerable to 43% of all cyberattacks, facing devastating consequences due to limited resources. A single DDoS attack can cost up to $22,000 per minute in downtime, a potentially crushing blow for smaller businesses. Estonia-based Blackwall addresses this challenge by protecting SMBs from malicious online threats, including DDoS attacks and ad fraud.
Previously known as Botguard, Blackwall has secured a €45 million Series B funding round led by Dawn Capital, with participation from existing investors MMC. This brings the company’s total funding to $58.8M; the valuation has not yet been disclosed.
Having already launched into the US and APAC, the company will use its new capital to double its headcount as it expands further in these key markets and invest in intense product development beyond its flagship product, GateKeeper, to enhance its offerings and protect against evolving threats like AI-driven attacks and ad fraud.
How Blackwall is protecting SMBs from malicious online traffic
Founded in 2019 by Nikita Rozenberg (CEO) and Denis Prochko (CTO), Blackwall tackles the unique vulnerability of SMBs to malicious online threats. While large enterprises can typically weather these attacks, SMBs often face catastrophic consequences due to limited resources and cybersecurity expertise.
Unwanted bot traffic throttles networks, and AI is driving up both the volume and sophistication of attacks that HSPs and MSPs must manage. This increases their costs while slowing down end customers’ sites. While large providers can invest millions in in-house solutions, many HSPs and MSPs require external support to address these challenges.
Blackwall’s core mission is to deliver robust, automated cybersecurity solutions that SMBs can quickly implement. The company achieves this by partnering with hosting providers, managed service providers, and e-commerce platforms, which integrate Blackwall’s solutions into their services. This arrangement ensures protection for SMB customers through their existing service and hosting providers.
Today, Blackwall is an AI-enabled security and web infrastructure company that protects over 2.3M websites and applications. Its unique approach fills a critical market gap by addressing malicious traffic at the infrastructure level, delivering essential protection to hosting providers and smaller businesses.
GateKeeper: the next-generation bot and attack detection mechanism
Blackwall’s flagship product, GateKeeper, is an advanced reverse proxy with next-generation bot and attack detection capabilities. It shields servers from bots and hacker attacks, helping HSPs and MSPs reduce operational costs by up to 25% through improved server farm efficiency. This optimisation helps maximise revenue for providers supporting millions of SMBs worldwide. Blackwall enables HSPs/MSPs to increase margins by offering scalable, high-value security services that attract new customers and create additional recurring revenue streams.
Unlike competitors like Cloudflare, Imperva, or DataDome, Blackwall distinguishes itself through its unique focus on automation and ease of use. This, along with its SMB focus, channel-based distribution, and ad fraud prevention, makes Blackwall a standout in the cybersecurity market.
Blackwall’s user-friendly, automated solutions are designed to make advanced security accessible to businesses without extensive cybersecurity expertise. By working through hosting providers and other intermediaries, Blackwall efficiently reaches a broad range of SMBs without direct sales efforts. The company has also launched an ad fraud prevention product—a unique offering that protects e-commerce businesses from bot-driven advertising waste.
Norman Fiore, General Partner at Dawn Capital, commented: “It is rare to see a business targeting SMBs with such a broad offer, of which each component is best of breed. Blackwall’s innovative technology provides exactly that.”Mina Samaan, General Partner at MMC Ventures, said, “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. With the rise of AI-driven threats, Blackwall’s products have never been more essential, and we believe it will become a leading force protecting against bots and other digital threats.”
The post Fighting AI threats head-on: Estonia’s Blackwall grabs €45M to enhance SMB cybersecurity appeared first on Tech Funding News.