As organizations across the MEA region increasingly embrace digitalization strategies and rapidly shift toward cloud migration, we will inevitably see an expansion of the threat surface area. The region has already witnessed exponential growth in threats such as DDoS attacks, phishing, and ransomware, resulting in the implementation of strict regulatory compliance measures across many countries and greater awareness around the need for organizations to improve their security postures. This will drive strong demand for security solutions over the next few years until the situation stabilizes.
Buguard raises $500K in seed round, eyes expansion in Saudi Arabia
Sep 7, 2023
As organizations across the MEA region increasingly embrace digitalization strategies and rapidly shift toward cloud migration, we will inevitably see an expansion of the threat surface area. The region has already witnessed exponential growth in threats such as DDoS attacks, phishing, and ransomware, resulting in the implementation of strict regulatory compliance measures across many countries and greater awareness around the need for organizations to improve their security postures. This will drive strong demand for security solutions over the next few years until the situation stabilizes.
With a share of 19.2%, the banking, financial services, and insurance (BFSI) vertical will be the MEA region’s biggest spender on security solutions and services this year and will remain so through 2026. Cybersecurity remains a top priority for the industry, with BFSI organizations continuing to spend on enhancing security in their application and development environments, strengthening customer trust in digital services, and developing security for cloud migration.
In this regard, Sharikat Mubasher conducted an interview with Youssef Mohamed, Founder and Chief Technology Officer of Buguard, the Cairo-based offensive security and dark web monitoring company, discussing the company’s latest fund round and how the proceeds will be used. Mohamed also discussed the recently launched product and the company’s expansion plan across the GCC, especially Saudi Arabia.
How will you allocate the proceeds of the company’s recent seed round?
Our $500,000 seed fund raise, led by A15, is our first external funding. Following a very successful first half of 2023, we are keen to build on our rapid momentum by growing our team, ramping up product development and sales, signing new strategic partnerships and expanding regionally.
Would you please give us more details regarding your newly launched product “Dark Atlas”?
Our newest product is Dark Atlas, a SaaS product for dark web monitoring and account takeover prevention. Dark Atlas has several competitive differentiators; the product is much broader and deeper and monitors for malware such as Redline, Raccoon, and Vidar - the root causes of most material data breach incidents. These are a serious threat as they steal saved credentials from victims’ browsers and have the relevant URL within which the credentials can be used.
Dark Atlas also monitors dark web marketplaces, hacking forums, underground channels, and private clouds to identify and help neutralize breaches across different venues.
How do you see the future of cybersecurity companies in Egypt?
We will continue to see the growth of the cybersecurity sector in Egypt for several reasons. As Egypt continues to undergo rapid digital transformation, the threat of cybersecurity becomes more real and therefore will need to be greater addressed, resulting in a growth of the industry.
Additionally, we are seeing a lot of support for cybersecurity from the Egyptian government as it plays a vital role in assisting Egypt’s strategy and 2030 vision for digital transformation. Collaboration between the private sector and government is imperative for the continued development of cybersecurity and for the prevention of cyberthreats.
What makes Buguard unique among its competitors in the market? What are the extra services you offer to your clients?
As a multinational cybersecurity firm, we offer a range of offensive security services including penetration testing and vulnerability assessment, phishing simulation, compromise assessment, threat intelligence and red teaming.
By performing different security assessments on the scope, we can identify security vulnerabilities on our client’s network, application, or code, and analyse the risk and its impact on the organization.
It is important we guarantee our clients are equipped to continually prevent, identify, and respond to cyberattacks by utilizing our awareness of attackers’ techniques to penetrate defenses, in-depth knowledge of the newest security tools, and a dedication to innovation.
We recently announced the launch of Dark Atlas, our new SaaS product for dark web monitoring and account takeover prevention. Dark Atlas specifically monitors compromised devices for information stealer malware, dark web marketplaces, hacking forums, underground channels, and private clouds to identify and help neutralize breaches across different venues.
Who are the company’s most important clients in Egypt and in the MENA region? and who are the clients you are targeting in the coming phase?
All our clients are important. We are sector agnostic and work with several companies in Egypt who are paving the way in their respective fields. Examples include Paymob, Rabbit and Thndr. We have also developed a global client base spanning Saudi Arabia, the United States, France, Australia and the UAE.
What is Buguard’s expansion plan in the GCC, especially in Saudi Arabia? How do you see the Saudi market attractive to your business?
Definitely. GCC expansion, particularly to Saudi Arabia, is a priority for us this year. The recent funding will help us fulfil our significant growth potential and expand our market reach.
Saudi Arabia has increased its investment in cybersecurity, and the government has formed several regulatory frameworks and laws to protect businesses from cyber threats, emphasizing the Kingdom’s dedication to cybersecurity and the sector’s maturity.
The Cyber Security Market is projected to grow at a CAGR of 12.4% between 2020 and 2026, with The National Cybersecurity Authority also setting out minimum standards for cybersecurity, as businesses are advised to adopt these measures to ensure the safety of their data.
As KSA and the GCC move forward with their rapid technological advancements, it is vital for businesses to have the right cybersecurity infrastructure in place to prevent any vulnerabilities.
How does the world of dark web cyber threats affect companies’ growth and performance?
The dark web threat is very real, dynamic, and growing. It can be a very dangerous place and is a haven for cybercriminals stealing and compromising personal credentials – which is still the most common cause of a data breach. The impact of the dark web, if not regulated can be significant, resulting in financial loss, reputation damage for the business, and a loss of stakeholder trust.
In the UAE alone, cyber-attacks increased by 71% in 2021, and PwC data shows 58% of Middle East organizations anticipate a rise in cyber spending, up from 43%. As the GCC region rapidly transforms digitally, more and more companies will adopt greater cybersecurity measures, as the impact of an attack increases and systems grow more complex.
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