Blackwall, an Estonia-based cybersecurity startup, raises €45 million in Series B funding to protect SMBs from malicious online traffic. Learn how their AI-powered solutions, like GateKeeper, are securing e-commerce websites and empowering businesses to combat bots, ad fraud, and more.
In today’s digital landscape, a significant portion of online traffic is driven by bots — both malicious and beneficial. However, the rise of artificial intelligence (AI) has empowered the latter, leading to an increase in sophisticated threats, such as DDoS attacks and data scraping. For small and medium-sized businesses (SMBs), these threats can be devastating. As cybersecurity entrepreneur Nikita Rozenberg notes, “The main difference is that large enterprises typically can survive with these threats. Most of these threats can simply kill small businesses.”
This observation prompted Rozenberg to launch Blackwall, an Estonia-based startup formerly known as BotGuard. Blackwall is tailored to address the specific cybersecurity needs of SMBs, differentiating itself from industry giants like CloudFlare and Imperva.
Protecting SMBs from the Growing Bot Threats
One of Blackwall’s key innovations is its ability to protect businesses from bot-driven attacks that increasingly target e-commerce and online platforms. Its focus on SMBs inspired the creation of products like GateKeeper, a reverse proxy solution that inspects and filters web traffic in real-time, using AI to identify and block malicious bots and intruders. This advanced technology helps businesses prevent common issues such as ad fraud, where bots consume advertising budgets meant for legitimate engagement.
The startup has made significant strides in launching new applications designed to provide comprehensive, AI-driven protection for businesses without the need for massive infrastructure investments. Blackwall’s rapid pace of innovation caught the attention of Dawn Capital, a B2B-focused venture capital firm that has backed Blackwall with €45 million (approximately $49.2 million) in Series B funding.
Blackwall’s New Focus and Product Expansion
Blackwall’s vision has expanded beyond its original offering. The fresh capital infusion will support the development of new products, further improving its capabilities to protect businesses against a growing range of online threats. As part of the company’s growth strategy, the funds will be used to scale operations, with an emphasis on product enhancements and global expansion. This funding will also help bolster Blackwall’s AI-powered security solutions, providing SMBs with an easier, automated solution that requires minimal manual intervention.
GateKeeper remains Blackwall’s flagship product, providing real-time traffic analysis and AI-powered filtering to block malicious requests. However, with the new funding, Blackwall plans to introduce additional solutions designed to protect businesses from the rapidly changing threat landscape.
Blackwall’s Unique Approach: Channel Model for SMB Growth
Blackwall’s business model is designed to meet the unique needs of SMBs. Unlike competitors that sell directly to businesses, Blackwall uses a “channel model” to partner with intermediaries like hosting service providers, managed service providers (MSPs), and e-commerce platforms. These partners benefit from Blackwall’s security solutions by offering them to their customers, improving their margins, and helping reduce costs associated with managing malicious online traffic.
By focusing on midmarket players — those that can’t afford large-scale in-house product development — Blackwall has found a way to provide enterprise-grade security to businesses that need it most. This strategic shift has allowed the startup to rapidly scale since its 2019 launch, now serving over 2.3 million websites and applications, supported by a team of 65.
Scaling Operations: Expansion into New Markets
The new Series B funding will enable Blackwall to double its headcount and accelerate its expansion into U.S. and Asia-Pacific (APAC) markets. With the support of Dawn Capital and MMC Ventures, which previously led Blackwall’s €12 million Series A round, the company is well-positioned to extend its cybersecurity services to a global audience. Blackwall’s product offerings are set to grow, and it will continue to provide vital protection for SMBs navigating the challenges of today’s complex cyber threat landscape.
Why SMBs Need Blackwall’s AI-Powered Security Solutions
As cyber threats evolve in sophistication and scale, SMBs are becoming increasingly vulnerable to cyberattacks that can disrupt operations and damage brand reputation. The need for effective, real-time defense solutions has never been more pressing, and Blackwall offers a comprehensive, cost-effective way to mitigate these risks. With AI-powered protection, seamless integrations, and a user-friendly channel model, Blackwall is empowering SMBs to secure their digital assets while focusing on business growth.
What’s Next for Blackwall?
- Expanded product portfolio to address the evolving threat landscape
- Doubling headcount to meet growing demand
- Further global expansion into key markets, including the U.S. and APAC
Blackwall’s commitment to providing enterprise-level protection for SMBs is reshaping the cybersecurity market and ensuring that even small businesses can defend against cyberattacks with ease. As the company continues to grow, it’s clear that Blackwall’s AI-driven approach is a game-changer in the fight against malicious online traffic.
