Israel’s cybersecurity startup Nokod secures $8M seed round to bolster low-code/no-code app security

The number of low-code platforms has surged in recent years. According to research from Gartner, the adoption of low-code/no-code platforms and robotic process automation (RPA) tools such as Microsoft PowerApps, ServiceNow, and UiPath is expected to reach around 65% of the IT market by 2024. In addition, the explosion of generative AI and tools like ChatGPT is projected to greatly fuel the development process of low-code/no-code solutions.

While these platforms offer businesses the advantage of rapid application development with minimal complex coding, leveraging third-party toolkits, they often lack the coverage of an application security stack. Consequently, the applications and automation developed through these platforms create new vulnerabilities and introduce the potential for compliance violations.

Enter Nokod Security, a Tel Aviv, Israel-based cybersecurity startup developing security for low-code / no-code custom applications and Robotic Process Automation (RPA). Nokod is building a platform that enables organizations to secure in-house low-code/no-code custom applications by scanning for security and compliance issues and applying remediation policies.

The co-founders of Nokod recognized the security gap early on and decided to help companies. Nokod CEO Yair Finzi was 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. The duo has 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.

Today, Nokod announced it has raised $8 million in seed funding to establish a presence in the United States market and expand the R&D teams and support novel research of security vulnerabilities in the low-code/no-code domain.

The round was backed with funding 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.

By seamlessly integrating security measures into the application’s lifecycle, Nokod enables organizations to streamline their security processes. The platform offers the security team a holistic view of the application inventory, allowing them to identify potential security issues and vulnerabilities. Nokod then provides customized auto-remediation solutions, effectively accelerating the organization’s digital transformation journey while ensuring a robust security posture.

Nokod has garnered significant interest from Fortune 500 companies across various industries, engaging in discussions to implement their solution. By addressing the unique security challenges of low-code/no-code applications and RPAs, Nokod is well-positioned to assist businesses in enhancing their cybersecurity measures and achieving their digital objectives.

“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,” Finzi said.

“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,” – says 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.

In 2019, the global cybersecurity market was valued at $163.53 billion, and it is expected to experience significant growth in the coming years. By 2030, the market is projected to reach a value of $430.46 billion, reflecting the increasing demand for robust cybersecurity solutions across various industries.

In addition, the low-code development platform market is also witnessing remarkable expansion. It is anticipated to reach a substantial size of $148.5 billion by 2030, with a compound annual growth rate (CAGR) of 27.8%. This growth can be attributed to the rising adoption of low-code development platforms, which enable organizations to accelerate application development processes, reduce coding complexities, and improve overall efficiency.