Case Study

Telivy - From Cyber Insurance to Cybersecurity Platform Acquired by Cytracom

We acted as Telivy's initial engineering team and built their complete cybersecurity platform, supporting multiple strategic pivots that transformed a cyber insurance marketplace into a security audit platform for MSPs, ultimately preparing the company for successful acquisition.

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Client:

Telivy

Year:

2019

Industry:

IT/Cybersecurity

Services:

Full Stack Development

DevOps and Infrastructure

Artificial Intelligence

Executive Summary

After securing funding through Y Combinator and other investors, Telivy's founders needed to build their product, test it with real users, and find market fit under early-stage constraints. What they needed most was a technical partner who would stay with them through uncertainty: someone who could build fast, adapt when the market pushed back, and remain committed when things got difficult. We became that partner from day one. Over the engagement, Telivy went through two major pivots, from a cyber insurance comparison tool to security audits for Managed Service Providers, before finding the product-market fit that led to their acquisition by Cytracom.

Digital Bunch Solution

We joined Telivy as their technical team from the start, building the complete platform architecture from scratch: front-end, back-end, and DevOps on GCP. As Telivy's market understanding evolved, so did what we built. When the original cyber insurance model didn't generate needed volume, we moved with them into MSP-focused security audits. We rebuilt the agent for enhanced Windows and MacOS support, integrated AI for personalized remediation and audit analysis, and connected the platform with ConnectWise for comprehensive security task management. Through budget constraints, market shifts, and M&A preparation, our team provided both development execution and strategic advisory support.

Telivy had positive user feedback, but the cyber insurance market simply didn't have enough volume to justify the business model. We helped them move fast, prototype, and test the market until they found the right fit.

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INSIGHT - INSIGHT - INSIGHT - INSIGHT -

Long-term success often depends less on perfecting the initial vision and more on building foundations flexible enough to evolve when market realities demand fundamental change.

Understanding what really mattered for Telivy


Telivy's initial platform wasn't a cybersecurity tool. It was a cyber insurance comparison marketplace with login functionality, quote creation and comparison, payment processing, e-signatures, and separate interfaces for agents and clients. User feedback was positive and technical execution solid. But the underlying challenge was market reality: there wasn't enough transaction volume in cyber insurance to support the growth and profitability the business model required.

Challenge

Despite positive user feedback and functional platform features, the cyber insurance market lacked sufficient saturation to support business growth. The business model required fundamental rethinking, not incremental improvements. Telivy needed a technical partner who could support strategic pivots without rebuilding infrastructure from scratch each time. The platform needed flexibility to accommodate changing business models, scalability to support global expansion, and architecture robust enough to eventually pass M&A due diligence. Most development partners optimize for a single product vision, making pivots expensive and time-consuming.

Solution

Our team built modular technical infrastructure that enabled business model iterations while preserving development investment. We integrated PSA systems to expand functionality and open new revenue channels without requiring platform overhauls. For the Windows and Mac applications, we designed a modular-agent architecture: core software with plugin additions that clients could customize based on specific operational needs. This gave clients flexibility to start with essential functionality and scale over time. The platform combined AI personalization for skill analysis with seamless PSA workflow integration for Managed Service Providers.

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Our Unique Approach: Long-Term Partnership Built for Market Evolution

Telivy needed a technical partner who could operate as an extension of their founding team through uncertainty, budget constraints, and strategic pivots that would derail typical client-vendor relationships. We approached this partnership with a one-team mentality from the start.

When Telivy needed to pause development due to budget constraints, we maintained the relationship. When they returned 18 months later ready to prepare for acquisition, we cleared backlogs and focused on system quality without needing to rebuild institutional knowledge. We engaged directly with Telivy's clients for technical support, participated in strategic discussions about product direction, and adjusted engineering resources based on current needs rather than rigid contracts.

This commitment proved critical during pivots. When the insurance marketplace model showed insufficient market volume, we helped the team move quickly into a new direction. When MSP-focused security audits became the focus, we expanded functionality across new audit types and platforms. When AI integration became essential for competitive positioning, we implemented intelligent analysis without compromising system stability.

Aleksander-Stós

Aleksander Stós

CTO & Co-Founder

We design codebases with a deep understanding that business direction always evolves. With this attitude, strategic change becomes controlled iteration, not a costly rebuild. Our one-team approach allows our clients to pivot, scale, and pass technical due diligence without frustrating client-vendor friction and major technical debt.

Success Factors

Our goal was to build a software solution that could keep up with a founding team searching for product-market fit, while maintaining the code quality needed for M&A proceedings.

Strategic Pivot to MSP Security Audits

We shifted the platform focus from a cyber insurance marketplace to security audits for MSPs, expanding functionality to include external and internal audits, domain scanning, and cloud scanning. This pivot addressed a market niche where MSPs need comprehensive security assessments across multiple client devices, positioning audits as tools supporting insurance sales rather than the primary product. The new model achieved global validation with a client base spanning Australia, Europe, Africa, and the USA. This fundamental business model change was made possible by the speed at which we could test, learn, and rebuild around validated assumptions.

Building the Telivy Agent

We built the agent installed on client machines from scratch, enhancing support for Windows and MacOS with Linux support planned. The new agent operates locally, collecting data on system, network, applications, and sensitive files with secure transmission to the platform. The architecture is extensible, enabling rapid addition of new features and platforms without compromising stability. The agent uses a flexible, multimodular C# architecture that gives us rapid development capability as well as access to multiplatform low-level system APIs. Our team accounts for an array of potential vulnerabilities and attack vectors.

AI-Powered Analysis and Remediation

We integrated AI focused on personalized remediation plans and audit result analysis, filtering false alarms and summarizing thousands of detected issues into accessible reports. Users access an AI-powered expert chat that explains technical concepts and helps prepare for client meetings, with executive summaries that help management understand key threats and recommendations without technical expertise. This approach significantly lowers the barrier to entry for cybersecurity, making comprehensive security assessment accessible to less technical users and differentiating Telivy from competitors offering only raw scan data.

Third-party Integration Readiness

We integrated with multiple PSAs, including ConnectWise and Autotask, the leading IT management tools for MSPs, enabling comprehensive incident and security task management that tracks errors, assigns responsibilities, and monitors repair status in the context of clients and risk categories. These integrations facilitate MSP fleet management with transparency in security actions, making Telivy part of MSPs' daily workflow rather than a standalone tool. The strategic importance of this functionality for client retention and growth cannot be overstated; it transforms Telivy from an external security scanner to an integrated component of MSP operations.

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Project Outcome

While Telivy had a compelling vision for simplifying cybersecurity, they needed a technical partner who could keep pace with the search for product-market fit. We helped transform market uncertainty into rapid prototyping cycles and honest assessment of what was working. The result: two pivots that led to validated demand, global expansion, and ultimately successful M&A positioning.

Looking Forward: Supporting Evolution Under New Ownership

The partnership continues post-acquisition, with Digital Bunch supporting platform development under new ownership. Our extended team model allows Telivy to scale engineering resources as needed while maintaining the institutional knowledge and architectural understanding built over years of collaboration. We continue supporting customer acquisition efforts, technical challenges, and product evolution as the platform expands its global MSP client base.

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Final Outcome

Our team helped Telivy move from an initial concept through two pivots to product-market fit, global growth, and successful acquisition by Cytracom.

Naren Sathiya

CEO, Telivy

Digital Bunch's technical skills are top-notch. Their expertise and willingness to adjust engineering resources to our needs has been invaluable, especially due to their approach; the emphasis on understanding exactly what we needed in the first place. The foundational architecture they built allowed us to pivot multiple times and ultimately successfully positioned us for acquisition."

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