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CEO Jacob Hansen described how COVID-19 curtailed the startup's fundraising plans. \"One by one the funds stopped making investments;;\" Hansen said. \"They called me up and said we are stopping investments;; we want to do this but can't now.\" Visit Business Insider's homepage for more stories. San Francisco-based startup Cobalt has raised $29 million to speed up penetrating testing;; or pentest;; through a digital platform that connects ethical hackers with prospective clients to assess the strength of their software's security. Cobalt's Series B round was led by Highland Europe. Pen test is growing at 21.8% a year;; and could be worth $4.5 billion by 2025;; per Markets and Markets data. The coronavirus pandemic has only increased the importance of cybersecurity as more businesses move online;; Cobalt's CEO Jacob Hansen told Business Insider. Cobalt was founded in 2013 by four Danish cofounders – Jacob Hansen;; Esben Friis-Jensen;; Jakob Storm and Christian Hansen. Despite the growing size of the penetration testing market;; the vast majority of spend currently goes to traditional consultancies — a slow;; expensive process that frustrates both testers and customers;; and that hasn't seen innovation in over a decade;; according to Hansen. \"Cybersecurity that has been performing well as an industry;;\" Hansen said. The company fully closed its funding round in early August after a lengthy process which saw Cobalt begin fundraising in late January before the coronavirus hit and curtailed their plans. \"One by one the funds stopped making investments;;\" Hansen added. \"They called me up and said;; 'We are stopping investments;; we want to do this but can't now.'\" The company hunkered down and went fully remote on the expectation that funding couldn't be secured during this period. 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