Armenian-based SaaS startup, EasyDMARC, is riding a wave of success after raising $20 million in a Series A funding round, spearheaded by New York-based Radian Capital. EasyDMARC offers a solution to simplify email security and authentication—an area that has recently surged in relevance due to new email standards enforced by tech giants Google and Yahoo!
The company’s rapid growth is tied closely to DMARC (Domain-based Message Authentication, Reporting, and Conformance), a technical standard designed to protect users from spam, spoofing, and phishing attacks. While DMARC has existed since 2012, it remained an underutilized but critical standard—until October 2023, when both Google and Yahoo! announced that compliance would become mandatory for bulk email senders, sparking a rush for companies to adopt the protocol.
The DMARC Boom: EasyDMARC’s Rise in the Market
Since its inception in 2018, EasyDMARC has taken advantage of growing industry demand, attracting over 83,000 customers in more than 130 countries. Founded by Gerasim Hovhannisyan and Avag Arakelyan, the startup’s mission is clear: make DMARC adoption easy and accessible for businesses without requiring extensive technical expertise.
Google and Yahoo’s regulatory push gave EasyDMARC a significant boost, putting the company in the spotlight. “We were flooded with interest from investors after Google’s announcement,” said Hovhannisyan in an interview with TechCrunch. “More than 40 venture capital firms reached out, and by March, we had multiple term sheets on the table. Ultimately, we found a great fit with Radian Capital, who shares our vision and culture. Their networks will help us expand in the U.S. and beyond.”
The momentum leading to EasyDMARC’s successful Series A round is no accident. With companies scrambling to comply with the stricter email standards, EasyDMARC’s user-friendly approach became highly sought after. “As the name suggests, our solution is easy. And the feedback from our customers validates this—businesses find peace of mind knowing they don’t need expert knowledge to implement our solution,” Hovhannisyan explained.
The Competitive Landscape: Standing Out in a Crowded Field
Of course, EasyDMARC isn’t without competitors. Industry heavyweights like Valimail, which has raised $84 million, and ProofPoint and Mimecast, which together have raised $90.2 million, also offer email security and authentication services. However, what sets EasyDMARC apart is its ease of use, a critical differentiator in a field that is often seen as complex and daunting by many companies.
Hovhannisyan’s vision for the startup was born from firsthand experience. Back in 2016, he witnessed the damaging effects of a sophisticated phishing attack on a multi-billion-dollar company. He began researching available email security technologies, and while DMARC was widely regarded as the best defense, he realized there were no straightforward solutions to help businesses implement it. Recognizing this gap in the market, he and co-founder Arakelyan launched EasyDMARC in 2018 with the goal of solving this issue.
Regulatory Shifts and Future Growth
Beyond Google and Yahoo’s changes, other industry standards are on the horizon, which are likely to further propel EasyDMARC’s growth. In particular, the Payment Card Industry Data Security Standard (PCI DSS)—a set of regulations aimed at ensuring the secure handling of credit card data—will soon become mandatory for all fintech companies starting in March 2024. This will require fintech companies to tighten their security measures, presenting another opportunity for EasyDMARC to expand its services to a broader market.
Armenia’s Growing Startup Ecosystem
EasyDMARC’s success story also highlights the broader growth of Armenia’s startup ecosystem. Despite its small population of around 3 million, the country has a long history of technological innovation, dating back to its time as one of the top scientific research hubs in the former Soviet Union. In recent years, Armenia has become a hotbed for tech talent, with globally recognized unicorns like Picsart and ServiceTitan emerging from the region.
Commenting on the funding round, Dana Sadovnic, principal at Radian Capital, stated, “EasyDMARC is positioned to capture a massive, largely untapped market, driven by generational shifts in email security regulations and a growing global concern over phishing attacks.”
The capital injection from this round will enable EasyDMARC to scale rapidly, particularly in the U.S. market, where it plans to strengthen its presence. With growing regulatory support and rising cybersecurity concerns globally, the company is well-positioned to lead the charge in email security and authentication.
Looking Ahead: A Bright Future
EasyDMARC’s journey is a testament to the power of timing, innovation, and simplicity in a complex field. The company has not only managed to capitalize on global regulatory shifts but has also built a solution that is intuitive and accessible to businesses of all sizes. As email security standards continue to evolve, EasyDMARC is set to remain at the forefront of the industry.
The combination of strategic foresight, strong leadership, and growing demand for user-friendly email security solutions has poised EasyDMARC for continued success. With its recent funding, the startup is ready to take the next step in its journey, helping more businesses worldwide protect themselves from email-based threats while contributing to Armenia’s growing reputation as a global tech powerhouse.
