Building Resilience and Vision: A Tech Startup Journey with Netarx

19 Feb

This week I had the pleasure of talking with Sandy Kronenberg, founder and CEO of Netarx, a cybersecurity company emerging from stealth mode to tackle the rapidly evolving threats posed by AI-driven cyberattacks. In this episode of Tech Startup Stories, Sandy shares his journey from private equity to building a cutting-edge cybersecurity startup, the realities of fighting sophisticated social engineering attacks, and why collaboration and humility are key to entrepreneurial success.

Listen to the Podcast
Available on Spotify, Amazon Music, Apple Podcasts, and YouTube.

From Idea to Patents: Building Netarx

Sandy’s journey began with a simple observation, too many people in his network were falling victim to ransomware, deepfake attacks, and other cyber threats. Inspired to make a difference, he put pen to paper and filed his first patent just under two years ago. Fast forward to today, he holds four patents (with international protections) and leads a team of developers working tirelessly to bring their product to market.

Sandy’s motivation was clear: to protect businesses and individuals from increasingly sophisticated cyberattacks. He highlights how common cyberattacks often start with a simple click or a convincing phone call, threats that AI technology now makes alarmingly easy to execute.

AI: The Double-Edged Sword

AI is revolutionising industries, but it also gives cybercriminals unprecedented tools to exploit vulnerabilities. As Sandy explains, “AI just makes things faster and more convincing.” Social engineering, (responsible for over 95% of cyberattacks), has become a primary battlefield. Criminals now use AI to mimic voices, faces, and even entire video calls, making it harder than ever to verify identities.

Netarx’s first product directly addresses this issue, with a simple visual indicator, it confirms the identity of communication participants, providing real-time verification across voice, video, and email platforms. “Everyone understands a traffic light,” Sandy says, explaining how it uses signals to instantly assess the safety of a communication.

Stealth Mode to Market: Timing is Everything

Why stay in stealth mode? Sandy likens cybersecurity innovation to an arms race. Competing against industry giants like Microsoft and Palo Alto Networks, he knew timing and intellectual property protection were critical. “We needed to stay quiet long enough to build a significant lead,” Sandy shares. Now, with a mature product and strategic partnerships on the horizon, Netarx is ready for the spotlight.

Targeting High-Risk Industries

While Netarx’s solutions benefit various sectors, the financial industry is currently the most interested, understandably so. “Fraud departments at financial institutions simply can’t keep up,” Sandy says. Banks, healthcare organisations, and government entities are eager to implement tools to combat increasingly elaborate scams.

Scaling Up: IPO Ambitions

Sandy envisions scaling Netarx into a comprehensive communications security platform, covering not just voice, video, and email but all enterprise communication channels. His long-term goal? An IPO. “I’m focused on growing the business as large as possible,” he affirms.

Advice for Aspiring Entrepreneurs

Reflecting on his journey, Sandy offers these valuable insights for startup founders:

Build Your Village: “You can’t do it alone anymore,” he says. Surround yourself with a solid team of employees, advisors, and strategic partners.

Share the Pie: Sandy believes in rewarding those around him. “Everyone strategic should have a piece of the puzzle.”

Stay Humble: Success often comes from leaning into relationships and being open to help.

With AI both fueling and fighting cybercrime, companies like Netarx are essential in safeguarding the digital world. Sandy’s mission is clear: outsmart the “new bank robbers” and ensure enterprise communications remain secure.