Tel Aviv-based company Nokod Security has announced an $8 million seed round of funding, which will be used to expand its operations in the United States market and support research into security vulnerabilities in the low-code/no-code domain. The funding comes from venture capital firms Acrew Capital, Meron Capital, and Flint Capital, all of which have a successful track record in investing in data protection, software verification, and cybersecurity companies.
The adoption of low-code/no-code and robotic process automation (RPA) platforms is projected to reach 65% of the IT market by 2024, according to industry predictions. These platforms, such as Microsoft PowerApps, ServiceNow, and UiPath, allow businesses to develop applications quickly without the need for complex coding. However, they often lack adequate security measures, which can leave them vulnerable to attacks and compliance violations.
Recognizing this gap in the market, Nokod Security was founded by cybersecurity experts Yair Finzi and Amichai Shulman. Finzi, a former Head of Department in an elite cybersecurity unit of the Israeli Army, co-founded and led SecuredTouch, a company acquired by Ping Identity. Shulman, a cybersecurity researcher and entrepreneur, co-founded and served as CTO of Imperva, a major player in application and data security.
Nokod Security aims to address the security and compliance risks associated with low-code/no-code custom applications and RPAs by integrating security into the application lifecycle. Their platform provides organizations with a comprehensive view of their application inventory, identifies security issues and vulnerabilities, and offers customized auto-remediation, effectively accelerating their digital transformation. The company is currently in discussions with Fortune 500 companies in various industries.
Yair Finzi, co-founder, and CEO of Nokod Security emphasized the importance of their product in today’s rapidly evolving application development landscape. As companies increasingly rely on low-code/no-code and RPA platforms, the adoption of tools like Generative AI can lead to a surge in application development without proper security measures. Nokod Security’s platform ensures secure development within enterprises, protecting sensitive business and personal data from unauthorized access.
Mark Kraynak, founding partner at Acrew Capital, expressed excitement about backing Nokod Security, emphasizing the looming security problem presented by the widespread deployment of low-code/no-code apps. He recognized the company as having the potential to solve this problem effectively.
Liron Azrielant, managing partner at Meron Capital, highlighted the investment in Nokod Security as a pioneering move in the low-code/no-code security sector. With the expected growth of Generative AI tools and the subsequent increase in low-code/no-code development, addressing the new attack surface created by these tools becomes crucial. Azrielant believes that Nokod has the right team to tackle this challenge.
Sergey Gribov, partner at Flint Capital, noted Nokod Security’s founders’ extensive experience in web application security, a critical factor for businesses of all sizes. This expertise convinced Flint Capital to invest in the company.
The global cybersecurity market is growing rapidly and was valued at $163.53 billion in 2019. By 2030, it is projected to reach a value of $430.46 billion. As the market grows, the demand for solutions that address security vulnerabilities in low-code/no-code development will also increase.
About Nokod Security, the Tel Aviv-based startup was founded in 2023 by Yair Finzi and Amichai Shulman. The company offers a platform that helps organizations secure their low-code/no-code custom applications and RPA by identifying and addressing security and compliance issues automatically.
With its recent funding round, Nokod Security is well-positioned to establish a presence in the United States market and continue its mission of providing robust security solutions for the low-code/no-code development sector. As the industry continues to evolve and adopt new technologies, the need for comprehensive security measures is paramount to protect sensitive data and ensure the success of digital transformation efforts.