New York-based Zip Security has raised $13.5 million in a Series A funding round to transform how small and medium-sized businesses (SMBs) approach and have cybersecurity solutions in their possessions. The latest investment, led by venture firm Ballistic Ventures and joined by Silver Buckshot, Mantis VC, General Catalyst, Human Capital, and Box Group, brings Zip Security’s total funding to $21 million.
Zip Security’s mission, right from its launch in 2022, is to make best-in-class cybersecurity services accessible, automated, and affordable for SMBs that often lack dedicated security teams but face rising cyberthreats and rigid compliance requirements.
In the U.S., up to 95% businesses with fewer than 100 employees do not have cybersecurity professionals on staff. These companies, collectively contributing over half of the U.S. GDP, are still frequently forced to rely on costly consultants or managed security service providers (MSSPs) that may be slow, reactive, and difficult to sustain long-term.
Being former Palantir engineers, the founders Josh Zweig (CEO) and Gabbi Merz (CTO) want to solve this problem with its already built AI-powered platform that automates critical cybersecurity and IT operations. As such, the cybersecurity company’s platform can give SMBs privileges like endpoint protection, identity and device management, threat detection and mobile device security, access control, as well as ensuring compliance with standards like SOC 2, HIPAA, and ISO 27001, without necessarily requiring or needing the supervision of in-house experts.
“For every dollar companies spend on security tools, many spend several more on services and consulting just to get those tools working. Cybersecurity shouldn’t be a luxury only big businesses can afford,” Zweig said. “We believe modern security should be automated, accessible, and cost-effective. We’re on a mission to give businesses the automation to easily set up, manage, and improve their security — without needing a team of experts.”
In addition to the list of privileges Zip’s platform can provide to SMBs, the company also integrates seamlessly with leading security software providers like Crowdstrike, Google Workspace, Jamf, Microsoft Intune, and Entra ID (Azure Active Directory). This ecosystem integration will enable SMBs to unify their security management and compliance operations through a single automated solution.
For the investors, they specifically see Zip Security addressing one of cybersecurity’s most overlooked challenges, which is bringing robust protection to organizations that cannot afford to get security wrong. And for this new funding round, it will allow Zip Security to further expand engineering and go-to-market teams, speed up product development, and build new integrations with third-party tools.
Ballistic Ventures co-founder and general partner Barmak Meftah emphasized that, “Josh and Gabbi have built a platform that’s not just functional, but empathetic to its users. We are proud to partner with them to democratize access to strong security.”
Nicole Perlroth, co-founder of Silver Buckshot Ventures, also made a point about market opportunity. “There’s a $2 trillion cybersecurity market opportunity — ten times what is sold today. That gap exists because we haven’t figured out how to protect the long tail — everyone downstream,” Nicole said. “That’s where Zip Security comes in. This isn’t just a massive market opportunity — it’s how we democratize security. Not just for the biggest players, but for everyone.”
The timing of Zip Security’s growth aligns with a SMB cybersecurity market that is rapidly expanding. Industry analysis predicts the global SMB cybersecurity solutions market to reach roughly $70 billion by 2034, with an exponential annual growth rate around 11% over the next decade. Also, SMB cyber spending is expected to rise sharply over the next several years as risks and regulatory demands continue to increase.
And as cybercriminals continue to increasingly target SMBs due to their relative lack of defenses, automation and AI-driven cybersecurity platforms like Zip Security will become more essential to the longevity of the security ecosystem.
With its strong investor backing and talented founders, Zip Security is well positioned to capitalize on the plentiful market opportunity in SMBs cybersecurity automation. This will help SMBs finally gain affordable, enterprise-grade cybersecurity, and enable them to focus less on fear of cyber threats and more on cybersecurity growth and innovation.
