CyberFOX has secured a nine-figure growth investment led by Level Equity, with participation from Radian Capital and the company’s founders. The round marks the first external capital for CyberFOX after five years of self-funded growth and reflects a deliberate decision about timing, not necessity.
The raise comes as identity, access control, and operational efficiency move to the center of MSP security strategies, and as AI begins to reshape how security software is built from the ground up.
Why this funding matters
CyberFOX’s decision to take outside capital was not driven by financial pressure or slowing momentum. The company had already scaled through acquisitions and organic growth. What changed was the broader technology landscape and the opportunity to accelerate a platform rebuild.
David Bellini, CEO of CyberFOX told ChannelE2E, “We didn’t need the money. We self-funded the company for the first five years. What changed is that we found the right partner at the right moment, and this could really accelerate us.”
Bellini frames the current moment as a structural shift rather than another product cycle. “The AI wave is coming, and there will be winners and losers. Just like the early days of the internet, you almost have to start over and rewrite software to take advantage of it.”
That perspective is rooted in experience. “At ConnectWise, we had to rewrite our entire product to move from on-prem to internet-native. AI feels very similar. You need to rebuild in a way that actually takes advantage of it.”
For MSPs and customers, the implication is that CyberFOX is using this funding to re-architect core capabilities, not just add AI labels to existing features.
A platform play, not a point solution
CyberFOX’s product direction is built around consolidation rather than specialization. The company has focused on PAM, password management, and DNS filtering, but the long-term aim is to reduce tool sprawl, not add to it.
“There’s a lot of great cybersecurity software built for Fortune 500 companies, but it’s too expensive and too heavy for SMBs,” Bellini said. “Our approach is 80% of the features at 90% of the discount. That’s what SMBs can afford, and that’s what they need.”
The ambition is to deliver breadth without enterprise complexity. “Our goal is to build a Palo Alto–style security suite for the SMB channel, delivered through MSPs.”
That strategy reflects the realities of smaller environments. “Security is never just one thing. There are dozens of areas you need to protect, and SMBs don’t have the staff or budget to manage a sprawl of tools.”
For MSPs, a unified platform means fewer products to deploy, fewer consoles to manage, and clearer paths to packaging security as a standard managed service.
What investors are betting on
From an investor perspective, the appeal is a company with established demand that is now positioned to scale horizontally. That includes expanding internationally, deepening platform integrations, and selectively acquiring complementary technologies.
“Because of our history in the channel, we tend to get early looks at startups that would really fit our security portfolio,” Bellini said. “This funding gives us flexibility to pursue M&A when it makes sense.”
The bet is not on rapid diversification, but on disciplined expansion that fills real gaps in MSP security stacks rather than creating overlap.
Implications for MSPs and IT teams
Operational simplicity remains a central design constraint. CyberFOX is building for environments where security is one responsibility among many, not a standalone function.
“MSPs need security products that are simple, easy to deploy, and easy to manage,” Bellini said. “You shouldn’t need to hire a dedicated security expert just to run them.”
That same constraint applies to end customers. “That’s the reality for SMBs and public sector organizations. The director of IT is wearing multiple hats.”
As CyberFOX invests in its roadmap, MSPs should expect continued emphasis on reducing setup time, ongoing management effort, and the need for specialized security staffing.
AI, pricing, and competition
AI is shaping not only product capabilities but also the economics of software development. CyberFOX is already using AI to accelerate how new offerings are built.
“AI allows products to be built much faster than before,” Bellini said. “We’ve already written major components of new offerings largely from the ground up using AI.”
That shift could affect pricing over time. “I actually think software prices could come down over time. AI lowers the cost of building, and there will be more competition. That’s healthy.”
For MSPs, increased competition and lower development costs could translate into more capable platforms without steady upward pressure on licensing fees.
Underserved markets: SMB and public sector
CyberFOX is also seeing traction in segments that are often priced out of enterprise security tools.
“We’re seeing strong traction with state and local governments and school systems,” Bellini said. “They want strong security without enterprise pricing, because they’re underfunded and understaffed.”
Those organizations are looking for practical fit rather than theoretical coverage. “They’re looking for security products that work within real-world constraints, not tools designed for teams of dozens of security specialists.”
CyberFOX’s funding round reflects a broader shift in cybersecurity toward platforms designed around how smaller organizations actually operate. “This is about building security that fits how SMBs actually operate,” Bellini said, “not forcing them to adopt enterprise models that don’t match their reality.”
