Armenian Startup Thrives as Google and Yahoo Tighten Email Standards

EasyDMARC, a B2B SaaS startup from Armenia, has raised $20 million in a Series A funding round led by New York-based Radian Capital. The company aims to simplify the complex process of email security and authentication for businesses by using Domain-based Message Authentication, Reporting, and Conformance (DMARC), a technical standard designed to protect email users from phishing, spoofing, and spam attacks.

DMARC, though an important standard, remained relatively unknown until October 2023 when major email providers such as Google and Yahoo announced they would enforce it for bulk email senders. This decision has rapidly increased the importance of DMARC compliance, positioning EasyDMARC to capitalize on the growing need for easy-to-implement email authentication solutions. Since DMARC’s creation in 2012, many email service providers have committed to implementing it, but it remains a challenge for companies to integrate into their systems without technical expertise.

Founded in 2018 by Gerasim Hovhannisyan and Avag Arakelyan, EasyDMARC has grown rapidly, amassing more than 83,000 customers across over 130 countries. The global adoption of DMARC has played a significant role in boosting the company’s growth, and the enforcement of this standard has made EasyDMARC an attractive proposition for investors. Hovhannisyan shared in an interview with *TechCrunch* that the funding round came together smoothly following Google’s announcement, attracting interest from more than 40 venture capital firms. EasyDMARC ultimately aligned with Radian Capital, whose network will support the company’s expansion in the U.S. and globally.

Despite facing competition from other email security and authentication companies such as Valimail, Proofpoint, and Mimecast—who have raised $84 million, $90.2 million, and significant sums respectively—EasyDMARC stands out due to its user-friendly solution. Hovhannisyan emphasized that the company's strength lies in its simplicity: “As the name implies, our solution is easy. What matters is customers saying it’s easy; they get peace of mind. They don’t need expert knowledge to implement our solution.”

The idea for EasyDMARC originated in 2016 after Hovhannisyan examined the aftermath of a severe phishing attack on a large company. While there were several email security tools available, none offered a simple way for businesses to implement the DMARC protocol. Recognizing this gap, Hovhannisyan and Arakelyan launched EasyDMARC in 2018, with the goal of making email authentication accessible for businesses of all sizes.

One of the key drivers of EasyDMARC’s growth is the increasing regulatory pressure on companies to enhance their cybersecurity practices. More security standards are on the horizon, which are expected to further benefit the company. For example, the Payment Card Industry Data Security Standard (PCI DSS), a set of security protocols designed to ensure companies handling credit card transactions maintain a secure environment, will become mandatory for all fintech companies in March 2024. This regulatory change aligns with EasyDMARC’s core mission of helping businesses comply with email security requirements, creating another growth opportunity for the company.

The funding round not only highlights the growth potential of EasyDMARC but also reflects the rising momentum within Armenia’s startup ecosystem. While Armenia is a small market with a population of around 3 million, its tech sector is booming, attracting attention from global investors. Armenian startups are typically international from the outset, given the limitations of the domestic market. The country’s history of technological innovation—particularly during the Soviet era when it was a leading scientific research hub—has contributed to the development of a thriving tech ecosystem.

Today, Armenia is home to several successful tech companies, including Picsart, a unicorn in the creative tech space, and ServiceTitan, a unicorn that provides software for the trades industry. The rise of these companies, alongside EasyDMARC, signals the global potential of Armenian tech startups. Investors are increasingly looking to Armenia for innovative solutions in the tech space, as the country’s talent pool continues to produce world-class entrepreneurs and engineers.

Commenting on the funding round, Dana Sadovnic, principal at Radian Capital, emphasized the strategic timing and market opportunity for EasyDMARC. She stated, “EasyDMARC is poised to capitalize on a massive and largely untapped market opportunity, driven by generational tailwinds from Google and Yahoo’s regulatory announcements and rising phishing attacks.” These market dynamics, coupled with increasing cybersecurity threats and regulatory pressures, make EasyDMARC’s value proposition more relevant than ever.

The company plans to use the $20 million investment to fuel its global expansion, particularly in the U.S., where it aims to strengthen its presence. The funding will also support further development of its product offerings to ensure a seamless experience for customers. EasyDMARC’s solution already integrates domain protection, email authentication, and reporting tools, which simplify the often complex task of email security management for businesses. With the fresh capital, the company intends to enhance its platform to meet the growing demands of regulatory compliance while maintaining its user-friendly approach.

Additionally, EasyDMARC will focus on expanding its partner ecosystem across Europe, the U.K., the U.S., and the Asia-Pacific region. By providing its Managed Service Provider (MSP) partners with additional resources and streamlined processes, the company aims to help them better serve their end-customers. This strategic move will allow EasyDMARC to scale efficiently while maintaining its high standards of customer service and product innovation.

As EasyDMARC continues to grow, it remains well-positioned to lead the email security and authentication market. The increasing enforcement of DMARC by major email providers, combined with the rising regulatory requirements for cybersecurity, creates a strong tailwind for the company’s future success. EasyDMARC’s commitment to simplicity and its ability to help businesses navigate the complex world of email security make it an invaluable partner for organizations looking to protect their digital communications from growing threats.

In conclusion, EasyDMARC’s $20 million Series A funding round marks a significant milestone for the company and highlights the growing importance of email security in today’s digital landscape. With a clear vision for growth, strong investor backing, and a user-friendly product, EasyDMARC is well on its way to becoming a leader in the global email security market.