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In the ever-evolving world of cybersecurity, there are giants who build for the few and then there are visionaries like Michael Argast, who build for the many. 

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As part of the CCN Cyber Champions series where we spotlight Canada’s boldest cybersecurity founders and their companies, we’re thrilled to bring you the story of Kobalt.io, a Vancouver-based company tackling one of the most under-served and high-risk sectors in cybersecurity: small and mid-sized businesses (SMBs). 

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Kobalt.io isn’t just a company, it’s a mission. And at the heart of it is a founder who didn’t set out to build another startup but couldn’t resist the call to solve a problem that no one else seemed willing to tackle. 

From semi-retirement to a startup on fire 

When Argast co-founded Kobalt.io in 2018, it wasn’t the culmination of a lifelong dream to be a tech entrepreneur. In fact, Argast had already “semi-retired” after an impressive career at security giants like Sophos and was dabbling in a lifestyle business called Sky North. 

Then came a call from longtime friend and fellow tech leader Steve Munford, who encouraged Argast to meet with two seasoned investors: Boris Wertz of Version One Ventures and Pankaj Agarwal, both deeply entrenched in Canada’s startup ecosystem. Their pitch was simple: SMBs were being crushed by the growing cyber threat landscape, and no one was building the kind of scalable, accessible and affordable security support they desperately needed. 

“I didn’t want to run a company again,” Argast laughs. “But I couldn’t stop thinking about how broken security was for small businesses.” 

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Why Kobalt.io? A name with purpose 

The name Kobalt wasn’t an accident. Inspired by the “blue team” concept in cybersecurity (the defenders), the color cobalt blue and the idea of strength through consistency, the brand represents everything the company stands for. 

“Kobalt is about clarity, reliability and protection,” Argast explains. “We’re here to be the security team that small businesses can count on.” 

The “.io” in the name is a subtle nod to the company’s tech-forward DNA, but the heart of the company is deeply human. From day one, Kobalt.io has been built with empathy for small business owners, people juggling growth, operations and survival, often without a single dedicated security resource. 

A brutal first year – and a breakthrough 

Startup stories often glamorize the grind, but Kobalt’s first year was anything but glossy.  

The team started by trying to build a custom security monitoring stack using open-source tools like Elastic but quickly found themselves burning too much capital and time. 

Enter a pivotal decision: partnering with Splunk. The decision came with trade-offs, including a massive shift in team structure and business model. But it was also the turning point that allowed Kobalt to scale their services without drowning in development cycles. 

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By the end of that first year, they had 15 paying customers and a glimmer of the traction that would define their trajectory. 

A giant market hiding in plain sight 

Today, Kobalt.io serves over 750 small and mid-sized businesses across North America and beyond. The company offers virtual CISO services, security program development, compliance readiness and 24/7 monitoring, all tailored to the realities of budget- and time-constrained SMBs. 

The problem they’re solving is massive. Over 40 per cent of cyberattacks target small businesses, but most of these organizations don’t have the resources, talent or awareness to defend themselves. They’re caught in a dangerous middle ground: too small to attract full-time security teams, but too large to fly under the radar of threat actors. 

Argast puts it bluntly: “It’s not a technology problem. It’s a people, process and resource problem. And we’re building a repeatable, reliable way to solve that.” 

Mission-driven, people-focused 

One thing that stands out about Kobalt.io is its culture of care. Whether it’s onboarding a 10-person startup or helping a rapidly growing fintech meet compliance demands, Kobalt’s approach is grounded in empathy and education. 

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“The hardest part for most SMBs is getting started,” Argast says. “We help them take that first step, then the next and the next. It’s not about becoming perfect overnight, it’s about consistent progress.” 

Kobalt’s model is also deeply scalable. By standardizing core elements of a security program and offering them as a managed service, the company can support hundreds and eventually thousands of clients without compromising quality or personalization. 

Leading with Canadian values, competing on a global stage 

As a Canadian founder, Argast is passionate about pushing Canada’s cybersecurity sector forward. But he’s also realistic about the country’s challenges. “In Canada, we’re cautious. We’re often slow to adopt new tech, and that includes cloud and cybersecurity,” he notes. “But great security enables innovation. It helps companies grow, win larger deals and expand faster.” 

Kobalt.io is living proof of that. With its roots in Vancouver and clients across multiple industries from health tech to e-commerce to financial services, the company is demonstrating how a Canadian-born business can thrive in one of the world’s most competitive markets. 

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Advice for the next generation of cyber champions 

Argast isn’t just building a company; he’s mentoring the next wave of cybersecurity professionals. His biggest piece of advice? Network relentlessly and go deep.

“Most cybersecurity jobs aren’t posted. You need to be part of the community, attend events, volunteer, get your name out there,” he urges. “And don’t try to be a generalist. Pick an area like threat detection, compliance or penetration testing and go geek-level deep. That’s how you’ll stand out.” 

Looking ahead: scaling with impact 

Kobalt.io has no interest in chasing unicorn status for the sake of headlines. Instead, the company is laser-focused on scaling impact. With the SMB market exploding and cybersecurity risk continuing to rise, the opportunity to help thousands, even tens of thousands, of companies secure their futures is very real. 

“We want to be the default security team for SMBs across the continent,” Argast says. “Not just in tech, but in manufacturing, healthcare, finance, retail – everywhere.” 

Why Kobalt.io is a true cyber champion 

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At CCN, we believe in celebrating the builders who are making a real difference. Kobalt.io is doing exactly that delivering enterprise-grade cybersecurity to the businesses that need it most but can least afford to go without. In a world obsessed with flashy tech and billion-dollar valuations, Kobalt.io reminds us that true impact comes from solving hard, overlooked problems with integrity, creativity and relentless care. 

Connect with Kobalt.io: https://kobalt.io
Follow Michael Argast on LinkedIn: linkedin.com/in/michaelargast 

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