Nokod Security announced its $8 million seed round, which will be used to establish a presence in the United States market, as well as to expand the R&D teams and support novel research of security vulnerabilities in the low-code/no-code domain.
Funds were raised from Acrew Capital, Meron Capital and Flint Capital, firms with a successful track record of investing in top companies in the data protection, software verification and cybersecurity sectors like Exabeam, Mitiga, Laminar, Socure, and others.
Adoption of low-code / no-code and RPA platforms like Microsoft PowerApps, ServiceNow or UiPath is predicted to reach 65% of the IT market by 2024. More so, Generative AI and ChatGPT-like tools, introduced just this past year, are set to hyper-accelerate low-code / no-code development.
Although these platforms provide businesses fast application development with minimal complex coding using third-party toolkits, they are not covered by the application security stack. As a result, the applications and automations create a new attack surface as well as introduce the risk of compliance violations.
Yair Finzi, a former Head of Department in an elite cyber security unit of the Israeli Army and a cybersecurity entrepreneur with over 15 years of experience, and Amichai Shulman, a cybersecurity researcher, advisor, entrepreneur and investor with multiple successful exits, recognized this gap early on. They have a proven track record of running successful companies: Yair co-founded and led SecuredTouch (acquired by Ping Identity), while Amichai co-founded and served as CTO of application and data security giant, Imperva.
With Nokod, Yair and Amichai empower businesses with a platform to manage cybersecurity and compliance risks stemming from their low-code / no-code custom applications and RPAs by streamlining security into the application’s lifecycle.
The platform provides the security team with a comprehensive view of the application inventory, identifies security issues and vulnerabilities and offers the organization customized auto-remediation, effectively accelerating their digital transformation. The company is in discussions with Fortune 500 companies in several verticals.
“In today’s world, application development is both time-consuming and costly, exacerbated by the anticipated threefold increase in the shortage of full-time software developers by 2025. As companies increasingly turn to low-code/no-code and RPA platforms, coupled with the rise of Generative AI tools, the adoption of low-code/no-code tools is set to skyrocket. This trend can take us back to the days when everyone coded without proper security measures, leaving sensitive business and personal data vulnerable to unauthorized access. Our product ensures 100% secure citizen development within enterprises,” said Yair Finzi СЕО of Nokod Security.
“Low-code / no-code apps are being widely deployed, but the shared security model, as in other domains, only helps customers up to a certain point, and then they are on their own. This is a huge looming security problem, and Acrew is excited to back a founding team at Nokod that can solve it,” said Mark Kraynak, founding partner at Acrew Capital.
“Meron invests in leading early-stage companies with deep technologies. We are proud to invest in a pioneering company in the world of low-code / no-code security. The growth of Generative AI tools and their expected adoption in the business environment will further accelerate the adoption of low-code / no-code development. However, there is currently no real solution to this new attack surface. Nokod has the right team to solve it at the right time,” adds Liron Azrielant, managing partner at Meron Capital.
“We invest in cybersecurity startups and place our bets on their teams. With Nokod, we are confident in their founders’ extensive experience in web application security, which is a critical factor for both small and medium-sized businesses as well as for large enterprises,” notes Sergey Gribov, partner at Flint Capital.
The global cybersecurity market was valued at $163.53 billion in 2019 and by 2030, the market is forecast to have a value of $430.46 billion. The low-code development platform market size is projected to reach $148.5 billion by 2030, growing at a CAGR of 27.8%.