EDEN PRAIRIE, MN – July 13, 2021 – Arctic Wolf®, a leader in security operations, today announced that the company has executed a financing round of $150 million, with Viking Global Investors, Owl Rock, a division of Blue Owl Capital, and other existing investors. Following this round, the company has achieved a valuation of $4.3 billion.
Capitalizing on hypergrowth and strong demand for its technology and services, Arctic Wolf is cementing its position as the market leader in Security Operations. With its innovative approach to solving cybersecurity’s effectiveness problem, Arctic Wolf is setting a new standard for customers looking to end cyber risk by leveraging the cloud-native Arctic Wolf® Platform and the Concierge Security® Team. With this significantly oversubscribed round, Arctic Wolf will continue accelerating its market momentum, expand operations globally, and bring to market new products and innovation to build world-class Security Operations for customers around the globe.
Arctic Wolf is the first to deliver a complete solution that gives organizations the protection, resilience, and guidance they need to defend against cyber threats, including Managed Detection and Response (MDR), Managed Risk, Managed Cloud Monitoring, and Managed Security Awareness —each delivered by the industry’s original Concierge Security Team.
Existing solutions are often reactive in nature and lack the holistic approach to cybersecurity that enables Arctic Wolf to minimize the likelihood and impact of a breach. In addition to delivering all key elements of the Security Operations framework, Arctic Wolf ensures a proactive approach in building security programs, including identifying vulnerabilities, risky configurations and user behaviors, and remediates the issues before attackers can exploit them.
Arctic Wolf’s business doubled in the past year both with regards to revenue and headcount, expanding substantially in the enterprise market. With approximately 3,000 total customers, Arctic Wolf is the fastest-growing company at scale in the fastest-growing area of the cybersecurity market. Worldwide spending on information security and risk management technology and services is forecast to grow 12.4% to reach $150.4 billion in 2021, according to Gartner.
In the past year, the company has expanded its customer base with a cross-section of mid-market and enterprise business and now reports 438% year-over-year ARR growth in large enterprise customers.
Additional growth points highlighting Arctic Wolf’s business traction and platform adoption include:
* 100% growth in year-over-year ARR for each of the last 7 years
* Rapid platform adoption growth with nearly 60% of customers using three or more Security Operations solutions
* Explosive channel growth with 650 global partners and over 40,000 trained sellers
* 148% increase in security events being processed (now processing 1.2 trillion security events a week)
* Expanded the executive team with Nick Schneider as president & chief revenue officer (CRO) and Dan Larson as chief marketing officer (CMO)
* Onboarded approximately 400 new employees in the last twelve months, with plans to add 500 new roles in the coming year
Recently, the company launched a new Managed Security Awareness solution, a radical new approach to security and awareness training that helps organizations build cyber resilience against human-based attacks, thus tapping into the growing market demand for security awareness and training. Additionally, Arctic Wolf restructured its partner program with new tiers and support services for partners to meet the explosive channel demand for its solutions and services and launched Service Assurance. Having recently launched in EMEA, this announcement will further accelerate Arctic Wolf’s global growth.
“We were incredibly impressed by the Arctic Wolf management team and the company’s relentless execution and growth. We believe the company is emerging as the clear leader in the market, and is an essential partner to every organization today that is challenged by the skills shortage in cybersecurity and at the same time is looking to securely take advantage of mega technology trends that are driving the need to adopt solutions like the Arctic Wolf platform to secure cloud, network, and data assets,” said Pravin Vazirani, managing director and co-head of Technology Investing, Owl Rock, a division of Blue Owl Capital.
“Since the founding of the company, we believed that the Security Operations market is ripe for disruption as existing solutions were failing customers and not keeping pace with the increased sophistication of cyber attacks,” said Brian NeSmith, chief executive officer, Arctic Wolf. “The valuation we received during this funding round is not only a testament to our enormous success in establishing Arctic Wolf as the leader in Security Operations but also speaks to the explosive global demand we are seeing from organizations looking to protect their hybrid work environments, drive secure cloud adoption, and formulate an actionable strategy to end cyber risk. We are thankful to our customers and partners who put their trust in us every day to be their first and last line of defense as we reinvent this market together.”
For additional information, read a blog by Brian NeSmith here.
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