Sunnyvale, Calif-based Arctic Wolf Networks has raised $60 million in a Series D funding round led by Blue Cloud Ventures and Stereo Capital. This brings the total raised to date to $148.2 million.
Arctic Wolf was founded in 2012 by Brian NeSmith (CEO) and Kim Tremblay (SVP, Strategy). The firm offers SOC-as-a-service for companies that don’t have an in-house security operations center, or have difficulty staffing one. Each customer gets its own concierge security team that operates as an extension of the customer’s own security team, delivering constant cloud-based monitoring, risk management, threat detection and response services.
“Arctic Wolf’s approach of providing businesses with dedicated experts who know their security landscape, and a predictable pricing structure they can understand, has resonated with organizations of all sizes who are looking to better secure their data,” said Brian NeSmith, CEO and co-founder of Arctic Wolf.
This resonance demonstrates itself in the company’s recent growth: customer growth of 130% in 2019; revenue growth of 4300% over the last four years (with the expectation of doubling revenue in 2020); and staff increase of 100% during 2019. The firm was ranked #25 in Deloitte’s 2019 Technology Fast 500, and NeSmith expects to use the funding to accelerate growth even faster and further. The company plans to increase staffing by a further 55% towards the end of the year, and will begin international expansion (it currently primarily operates out of offices in Eden Prairie, Minnesota and Waterloo, Ontario).
There is some indication that Arctic Wolf may seek to make small acquisitions following the funding (which was arranged back in December 2019, but only now announced) to add to the 2018 acquisition of continuous vulnerability assessment firm RootSecure — but nothing has yet been announced.
Investor Stereo Capital believes it is the combination of SOC technology with dedicated concierge security teams that makes Arctic Wolf stand out. Dmitry Dakhnovsky, managing partner, described Arctic Wolf as “the only scale platform that combines a state-of-the-art technology stack with top class security analysts in a single offering,” bringing “true enterprise grade security to businesses who would not be able to achieve it on their own.”
Arctic Wolf raised $16 million in a Series B funding round in January 2018, and a further a further $45 million in a Series C round in October 2018.
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