Estonia’s Blackwall has secured $100 million in fresh capital, pushing its valuation to $2.2 billion. The company provides web security tools for hosting providers to manage traffic from AI agents and bots. This funding will support its global expansion across North America, Europe, and Asia.
Estonia-based cybersecurity firm Blackwall has completed a $100 million Series C funding round. The deal pushes the company's valuation to $2.2 billion, which is four times higher than its valuation during the previous funding round in 2025. The investment was led by AVP, with participation from existing backers including Dawn Capital, MMC Ventures, and Tera Ventures.
Blackwall operates in the web security space but uses a distinct channel-based business model. Unlike major players such as Cloudflare or Akamai, which often sell directly to website owners, Blackwall sells its security and bot-management tools as white-label bundles. Hosting providers and managed service firms buy these tools and integrate them into their own customer offerings. This allows the providers to offer security features to their own clients without the need to build the technology in-house.
The company’s valuation has grown significantly due to the increasing volume of automated web traffic. As the internet experiences a surge in autonomous AI agents and bots, hosting companies face a growing need for infrastructure that can distinguish between human users, legitimate AI crawlers, and malicious botnet traffic. Blackwall uses edge-based AI models and digital fingerprinting to provide this filtering service, which helps hosting providers maintain cleaner traffic for their platforms.
While the company has seen rapid growth, it faces clear competitive risks. It operates in a sector dominated by well-capitalized firms like Cloudflare, which already possess significant market share in web infrastructure. If these larger competitors pivot their strategies to focus more on white-label or channel-based security solutions, Blackwall could face pricing pressure or a loss of market share. The firm's ability to maintain its neutral status and keep its hosting partners happy will be a key factor in its long-term success.
The firm plans to use the new capital to expand its reach into North America, Europe, the Asia-Pacific region, and the Middle East. As AI agents transition from simple content scraping to performing active online transactions, the demand for security systems that can authorize and handle these transactions is expected to rise. The company's future performance will depend on how effectively it can scale its suite of security tools to meet the needs of global infrastructure providers while defending its niche against larger cybersecurity companies.