MDR specialist will invest in developing new solutions and building SOC in Minnesota
Arctic Wolf, which offers security operations and managed detection and response (MDR) services to organizations through its channel partners, raised $200 million in the latest round of funding that pushed its valuation to $1.3 billion.
The Lowdown: At the same time, Arctic Wolf said Thursday it’s moving its global headquarters out of California, leaving Sunnyvale for Eden Prairie, Minnesota, which has been the center of the company’s growth strategy for the past several years. The operations there have grown to more than 200 employees, while the company has a total of 500-plus staffers.
The Details: Arctic Wolf officials sees the company’s offerings as a way to complement customers’ and partners’ own cybersecurity operations and help bridge the skills gap that many face. The company provides security operations as a service that includes its cloud-native Arctic Wolf Platform and Arctic Wolf Concierge Security experts, giving customers and partners the tools for protecting their on-premises and cloud environments.
The latest round of funding will go toward developing new security operations offerings and extend the company’s reach into new markets. Arctic Wolf also will invest in building out its operations in Minnesota, adding more than 150 new jobs and building its third security operations center (SOC).
In all, Arctic Wolf has raised $348 million since it was founded in 2012. Last year the company committed to a 100% channel strategy.
The Impact: Organizations that are facing growing numbers of increasingly complex cyberattacks and a shortage of skilled cybersecurity professionals are turning to MDR providers to help them shore up their defenses. A report from ResearchandMarkets this summer is forecasting the global market will grow to more than $1.9 billion by 2024 from $893.8 million in 2019.
Background: Arctic Wolf – which competes with the likes of Alert Logic, Cisco Systems, and FireEye (rumored to be an acquisition target by Cisco) – has seen significant year-over-year growth, including a 106% increase in subscription revenue, 100% growth in enterprise customers, 282% growth in the number of channel partners, and a 270% jump in the number of security events it processes, which now is nearing 1 trillion a week.
The Buzz: “Every year, businesses continue to make significant new investments in cybersecurity tools, yet we still see breaches in the headlines. The rapid growth of Arctic Wolf is being driven by organizations realizing that they don’t have a tools problem, but an operational one, and that they can’t solve their security operations challenges on their own,” Arctic Wolf co-founder and CEO Brian NeSmith said. “Whether for a small business or a large enterprise, the Arctic Wolf Platform is built to meet their cybersecurity needs, and this new round of funding will allow us to rapidly scale our business so that we can keep even more organizations safe from cyberattacks.”
“The Minneapolis area has a rich and growing history of world-class technology companies that, combined with access to a highly skilled workforce, central location, and a favorable business environment, make it the ideal place for Arctic Wolf to call home,” said Nick Schneider, chief revenue officer. “We are excited to begin the next phase of Arctic Wolf’s growth from our headquarters in Minnesota and look forward to broadening our role within the community.”