Blackwall Raises €45M Series B to Protect SMBs from Online Threats

The Rising Tide of Bot Traffic and a New Defense Strategy

A significant portion of current online traffic originates from automated programs, encompassing both beneficial bots and malicious actors. However, advancements in artificial intelligence are dramatically increasing the prevalence of the latter.

Companies are now facing a renewed surge of threats, ranging from distributed denial-of-service (DDoS) attacks to data scraping. Cybersecurity expert Nikita Rozenberg emphasizes the disproportionate impact on small and medium-sized businesses (SMBs).

Rozenberg states that while larger enterprises generally possess the resources to withstand such attacks, they can be devastating for smaller businesses, potentially leading to their failure.

Introducing Blackwall: A Security Solution for SMBs

Driven by this observation, Rozenberg founded Blackwall, an Estonian startup initially known as BotGuard. The company operates in a similar space as established players like Cloudflare and Imperva, but specifically targets the needs of SMBs.

This strategic focus has shaped the company’s product development. Recently, Blackwall launched a new product designed to prevent ad fraud, protecting e-commerce websites from having their advertising budgets wasted by bot activity.

The rapid pace of product innovation and planned future developments were key factors in securing a €45 million (approximately $49.2 million) Series B funding round led by Dawn Capital, a venture capital firm specializing in B2B investments.

Leveraging AI for Real-Time Threat Mitigation

The new funding will be used to accelerate the development of additional products beyond Blackwall’s core offering, GateKeeper. GateKeeper functions as a reverse proxy, meticulously inspecting incoming traffic.

It employs AI-powered analysis to identify and filter out malicious requests in real time, protecting against threats such as bots and unauthorized intrusions.

The company’s rebranding to Blackwall reflects its broadened scope. Co-founder Denis Prochko drew inspiration from the video game Cyberpunk 2077, where the Blackwall is a powerful firewall safeguarding the digital world from rogue AI.

A Channel-Focused Approach to Market Penetration

Despite the futuristic inspiration, Blackwall’s real-world implementation prioritizes simplicity and automation to cater to SMBs. This often results in a seamless, invisible experience for end-users.

Rather than direct sales, Blackwall utilizes a “channel model,” partnering with intermediaries like hosting providers, managed service providers, and e-commerce platforms.

These partners can enhance their service offerings and improve profitability by integrating Blackwall’s security solutions, providing a competitive advantage and reducing costs associated with malicious traffic.

Targeting the Mid-Market and Achieving Rapid Growth

Blackwall specifically targets mid-market businesses that lack the resources for extensive in-house security development, unlike larger competitors such as GoDaddy. They require external support to effectively address these challenges.

This sales strategy has proven highly successful. Since its launch in 2019, Blackwall has partnered with over 100 such organizations, enabling rapid scaling.

Currently, a team of 65 employees supports the deployment of Blackwall’s services across more than 2.3 million websites and applications.

Expansion Plans and Continued Investment

The recent funding will facilitate a doubling of Blackwall’s workforce and an intensified focus on expanding its presence in the U.S. and APAC markets.

The company will leverage the support of Dawn Capital, alongside existing investor MMC Ventures, which led the startup’s €12 million (approximately $13.1 million) Series A round just one year prior.